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The past twelve months have brought real progress.
the Fontainebleau summit in June it was agreed that our
budgetary contribution should be corrected in a lasting
way, and this will be done on the revenue side. The
effect of this will be to make our payment to the
budget about half what it would have been without an
agreement. This represents a major step forward.
Taken together with the agreement reached on the need
for sound financial management, it represents a secure
foundation on which to base the future construction of
Europe. And the fact that the CAP will no longer
swallow an ever-increasing proportion of the Community
budget will mean that there is more scope for the
development of the new non-agricultural policies which
Europe needs.
11. Considerable progress has been made in the
enlargement negotiations. Success here is essential,
and not just for the sake of the economic prosperity
and democratic commitment of Spain and Portugal.
Accession by Spain and Portugal will create new
opportunities for existing members. It will also
cement the democratic foundation of Western Europe,
which is the bedrock on which all our other
achievements are built. That is why Britain will make
every effort to help overcome the difficulties which
remain, so that Spain and Portugal may join the
Community on 1 January 1986. We shall also keep our
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