Britain agrees to cut EU rebate without farm reform

UK prime minister Tony Blair has signalled London will agree to cut its rebate from the EU budget, without a link to common agricultural policy (CAP) reform but through excluding new member states from contributions to the "British cheque."

In return, the poor states from central and eastern Europe would have to accept lower structural funds from EU coffers, under the emerging British proposal.

"If we cannot get a large deal which alters fundamentally the way the budget is spent,...