BERLIN, Feb. 4 (UPI) -- The coming review of European Union finance has opened deep rifts in Germany.
German Chancellor Gerhard Schroeder has held fast to his demand that national contributions to the EU not exceed 1 percent of gross national income.
German Christian Democratic leader Angela Merkel has rejected that demand, accusing Schroeder of pursuing "Rambolike" tactics with the EU.
The official stance of the German finance ministry is that EU budgetary concerns have more to do with excessive spending than inadequate funding, but Merkel and others argue Germany stands to lose greatly if relations with Brussels ice over.
Merkel points out that East Germany receives significant EU support.
The EU budget commission is set to clarify its vision for future financing -- perhaps to include the first-ever direct EU tax -- in a paper to be published Feb. 10.
EU projects are currently funded by a combination of member state contributions, customs duties and agricultural levies.
