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EU budget deal unlikely, says Angela Merkel | EU budget deal unlikely, says Angela Merkel |
(about 5 hours later) | |
German Chancellor Angela Merkel says she doubts an agreement can be reached on the European Union's next budget at the summit taking place in Brussels. | German Chancellor Angela Merkel says she doubts an agreement can be reached on the European Union's next budget at the summit taking place in Brussels. |
She spoke after negotiations on the 2014-2020 budget were adjourned until midday on Friday (11:00 GMT). | She spoke after negotiations on the 2014-2020 budget were adjourned until midday on Friday (11:00 GMT). |
The opening of the summit was delayed for three hours because of stark differences over the budget plans. | The opening of the summit was delayed for three hours because of stark differences over the budget plans. |
Most EU members support an increase in the budget but several countries say it is unacceptable at a time of austerity. | Most EU members support an increase in the budget but several countries say it is unacceptable at a time of austerity. |
Earlier, President of the European Council Herman Van Rompuy circulated a revised proposal for the new budget and said he believed that a compromise was possible. | Earlier, President of the European Council Herman Van Rompuy circulated a revised proposal for the new budget and said he believed that a compromise was possible. |
"I think we're advancing a bit, but I doubt that we will reach a deal," Mrs Merkel said. | "I think we're advancing a bit, but I doubt that we will reach a deal," Mrs Merkel said. |
She has previously said that another summit may be necessary early next year if no deal can be reached now. | She has previously said that another summit may be necessary early next year if no deal can be reached now. |
French President Francois Hollande also cautioned that an agreement might not be possible. | French President Francois Hollande also cautioned that an agreement might not be possible. |
But he added: "We should not consider that if we don't get there tomorrow or the day after, all would be lost." | But he added: "We should not consider that if we don't get there tomorrow or the day after, all would be lost." |
The 90-minute session late on Thursday followed a gruelling day of face-to-face meetings between Mr Van Rompuy and each of the bloc's leaders, followed by a flurry of backroom discussions. | The 90-minute session late on Thursday followed a gruelling day of face-to-face meetings between Mr Van Rompuy and each of the bloc's leaders, followed by a flurry of backroom discussions. |
Before suspending talks, leaders nominated Luxembourg's Yves Mersch to the executive board of the European Central Bank. | Before suspending talks, leaders nominated Luxembourg's Yves Mersch to the executive board of the European Central Bank. |
'Not happy' | 'Not happy' |
The EU Commission, which drafts EU laws, has called for an increase of 4.8% on the 2007-2013 budget. | The EU Commission, which drafts EU laws, has called for an increase of 4.8% on the 2007-2013 budget. |
The UK is the most vocal of EU member states seeking cuts in the budget to match austerity programmes at home. | The UK is the most vocal of EU member states seeking cuts in the budget to match austerity programmes at home. |
"No, I'm not happy at all," Prime Minister David Cameron said about Mr Van Rompuy's offer to cap spending at 973bn euros (£783bn; $1.2trn). | "No, I'm not happy at all," Prime Minister David Cameron said about Mr Van Rompuy's offer to cap spending at 973bn euros (£783bn; $1.2trn). |
"Clearly, at a time when we're making difficult decisions at home over public spending, it would be quite wrong - it is quite wrong - for there to be proposals for this increased extra spending in the EU." | "Clearly, at a time when we're making difficult decisions at home over public spending, it would be quite wrong - it is quite wrong - for there to be proposals for this increased extra spending in the EU." |
A Downing Street statement after the meeting said Mr Cameron had stressed the importance of the UK keeping its budget rebate, worth 3.5bn euros in 2011. | A Downing Street statement after the meeting said Mr Cameron had stressed the importance of the UK keeping its budget rebate, worth 3.5bn euros in 2011. |
The statement called the rebate "fully justified". The EU Commission and some EU governments want the rebate scrapped. | The statement called the rebate "fully justified". The EU Commission and some EU governments want the rebate scrapped. |
Mr Cameron has warned he may use his veto if other EU countries call for any rise in EU spending. The Netherlands and Sweden back his call for a freeze in spending, allowing for inflation. | Mr Cameron has warned he may use his veto if other EU countries call for any rise in EU spending. The Netherlands and Sweden back his call for a freeze in spending, allowing for inflation. |
Poland and its former-communist neighbours, which rely heavily on EU cash, want current spending maintained or raised. | Poland and its former-communist neighbours, which rely heavily on EU cash, want current spending maintained or raised. |
Mr Hollande has also called for subsidies for farming and development programmes to be sustained for poorer nations. | Mr Hollande has also called for subsidies for farming and development programmes to be sustained for poorer nations. |
France has traditionally been a big beneficiary of EU farm support. | France has traditionally been a big beneficiary of EU farm support. |
Failure to agree on the budget would mean rolling over the 2013 budget into 2014 on a month-by-month basis, putting some long-term projects at risk. | Failure to agree on the budget would mean rolling over the 2013 budget into 2014 on a month-by-month basis, putting some long-term projects at risk. |
Analysts say that could leave the UK in a worse position, because the 2013 budget is bigger than the preceding years of the 2007-2013 MFF. | Analysts say that could leave the UK in a worse position, because the 2013 budget is bigger than the preceding years of the 2007-2013 MFF. |
The UK government could then end up with an EU budget higher than what it says it will accept now. | The UK government could then end up with an EU budget higher than what it says it will accept now. |
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