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| European Parliament clashes with ministers on EU budget | European Parliament clashes with ministers on EU budget |
| (35 minutes later) | |
| The European Parliament has rejected the 27 EU governments' position on next year's EU budget, triggering hard bargaining to reach a deal. | The European Parliament has rejected the 27 EU governments' position on next year's EU budget, triggering hard bargaining to reach a deal. |
| In a vote in Strasbourg the MEPs backed the European Commission's call for a 6.8% budget rise for 2013. | |
| An MEPs' report deplored a decision by the Council - the 27 governments - to cut that figure to 2.79%. | An MEPs' report deplored a decision by the Council - the 27 governments - to cut that figure to 2.79%. |
| The long-term budget for 2014-2020 is also being debated, ahead of a key leaders' summit next month. | The long-term budget for 2014-2020 is also being debated, ahead of a key leaders' summit next month. |
| UK Prime Minister David Cameron has promised a "tough" and "rigorous" approach to the budget talks, saying he will exercise his veto if necessary. Budget decisions require the agreement of all 27 member states. | UK Prime Minister David Cameron has promised a "tough" and "rigorous" approach to the budget talks, saying he will exercise his veto if necessary. Budget decisions require the agreement of all 27 member states. |
| In 2011 the UK's net contribution to the EU budget was 11.27bn euros (£9.2bn; $14.7bn), after the UK's rebate of 3.56bn euros from the EU. | In 2011 the UK's net contribution to the EU budget was 11.27bn euros (£9.2bn; $14.7bn), after the UK's rebate of 3.56bn euros from the EU. |
| Mr Cameron has said he has the support of the German, French, Finnish and Dutch governments to oppose any increase in the seven-year budget above the rate of inflation. He says national governments' tough budget cuts, dictated by the scale of the debt crisis, make the case for reining in EU spending all the more compelling. | Mr Cameron has said he has the support of the German, French, Finnish and Dutch governments to oppose any increase in the seven-year budget above the rate of inflation. He says national governments' tough budget cuts, dictated by the scale of the debt crisis, make the case for reining in EU spending all the more compelling. |
| The Commission, however, argues that the cuts proposed by the Council would harm Europe's growth efforts, hitting research and small firms. | The Commission, however, argues that the cuts proposed by the Council would harm Europe's growth efforts, hitting research and small firms. |
| In 2012 the EU budget was 129.1bn euros (£105bn; $168.5bn), a 1.9% increase on 2011. | In 2012 the EU budget was 129.1bn euros (£105bn; $168.5bn), a 1.9% increase on 2011. |
| The biggest items of spending, accounting for about 80% in total, are agriculture and cohesion funds - aid for Europe's poorer regions. France is especially keen to maintain agriculture spending, while cohesion is a big issue for the ex-communist countries in Eastern Europe. | The biggest items of spending, accounting for about 80% in total, are agriculture and cohesion funds - aid for Europe's poorer regions. France is especially keen to maintain agriculture spending, while cohesion is a big issue for the ex-communist countries in Eastern Europe. |
| The European Parliament's budget committee calls for spending levels for those major budget items to be at least maintained at the 2007-2013 level. | The European Parliament's budget committee calls for spending levels for those major budget items to be at least maintained at the 2007-2013 level. |
| But the MEPs also call for "significant increases" in the budgets for competitiveness, small and medium enterprises (SMEs), sustainable infrastructure and research and innovation. They see those budget areas as growth-enhancing. | But the MEPs also call for "significant increases" in the budgets for competitiveness, small and medium enterprises (SMEs), sustainable infrastructure and research and innovation. They see those budget areas as growth-enhancing. |