European Political Correspondent Jonathan Beale: Many countries argue that the rebate must be renegotiated

The European Union's foreign ministers are gathering in Brussels for talks primarily on financial reforms - included in this is the future of the UK's rebate package.

Other members, notably the Germans, are arguing that their annual payments into the EU's coffers should be reduced if London continues to receive 'discounts' worth more than £2bn a year.

Poverty trap

The UK Government insists that Britain is still one of the poorer EU member states, but remains in the minority of governments which pay more to the Euro kitty than they take out in grants and subsidies.

This meeting comes just two days after the French President Jacque Chirac put the UK Prime Minister Tony Blair on the spot by insisting that the unique rebate deal won by Mrs Thatcher 13 years ago is now up for re-negotiation.

Non-negotiable

The foreign secretary echoed Mr Blair's insistence that the rebate is not negotiable.

Robin Cook: "It's justified, it's right, we're going to keep it"

He said: "We need the rebate and we also accept ... the rebate is justified."

But other EU foreign ministers warned that they expected a detailed debate on all aspects of the EU's future financing arrangements, including the question of whether the rebate is still justified.

The foreign ministers were holding talks on the so called "Agenda 2,000" programme - the most comprehensive overhaul of the EU's financing and its institutions for decades.

Mr Cook and his colleagues were also discussing priorities for next weekend's summit of EU leaders in Vienna.