British Prime Minister Tony Blair has said Britain will not give up its EU budget rebate.
However, Mr Blair said Britain would be willing to pay its 'fair share' of development costs in the EU’s new member states.
Mr Blair has been holding talks in Budapest with the leaders of Hungary, Poland, Czech Republic and Slovakia. All four states are new members of the EU.
Britain currently holds the rotating presidency of the European Union until the end of 2005. Yesterday, Mr Blair met leaders from Estonia, Latvia and Lithuania in the Estonian capital, Tallinn.
At a press conference in Budapest today, Mr Blair was steadfast on the issue of the budget rebate: 'I've made it clear all the way throughout I am not giving up the rebate but I've also said we've got to pay our fair share of the costs of [EU] enlargement.'