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EU budget: David Cameron says deal 'not good enough' | EU budget: David Cameron says deal 'not good enough' |
(35 minutes later) | |
UK Prime Minister David Cameron has said the EU budget deal being offered in Brussels "was not good enough", as the summit broke up without agreement. | UK Prime Minister David Cameron has said the EU budget deal being offered in Brussels "was not good enough", as the summit broke up without agreement. |
Mr Cameron said "unaffordable spending" was being cut in its member countries and EU institutions had to start to live in the "real world". | |
He said that what had been suggested amounted to "tinkering" with spending. | He said that what had been suggested amounted to "tinkering" with spending. |
"We put down a very clear marker," said the PM, adding that a deal was still "doable" but not "at any cost". | |
"This wasn't Britain as some sort of lone actor," he said, adding that other countries backed the UK view. | "This wasn't Britain as some sort of lone actor," he said, adding that other countries backed the UK view. |
At a press conference after the summit ended Mr Cameron said: "All of these countries are net contributors to the EU. In other words, like Britain, they write the cheques. | |
"Together, we had a very clear message - 'We are not going to be tough on budgets at home just to come here and sign up to big increases in European spending'." | |
He added: "But we still believe a deal is absolutely do-able. Freezing budget is not an extreme position." | |
The biggest net contributors (those who pay in more than they get back) are: Germany, the UK, France and Italy but EU Commission data shows that in terms of per capita contributions the UK is sixth, after the Netherlands, Denmark, Sweden, Germany and Finland. | |
Leaders of the 27 EU member countries are expected to meet again early next year. | Leaders of the 27 EU member countries are expected to meet again early next year. |
Some countries had wanted to continue the talks but the two day summit ended after Germany and the UK insisted the differences were too great. | |
Talks on the 2014-2020 budget began on Thursday and continued on Friday afternoon, with most EU members wanting a budget increase, but the UK and some others wanting a freeze or cut. | |
President of the European Council Herman Van Rompuy had circulated a revised proposal for the new budget at the start of the two-day summit and said he believed a compromise was possible. | |
But German Chancellor Angela Merkel said after Thursday's talks: "I think we're advancing a bit, but I doubt that we will reach a deal." | But German Chancellor Angela Merkel said after Thursday's talks: "I think we're advancing a bit, but I doubt that we will reach a deal." |
UK rebate | |
French President Francois Hollande also cautioned that an agreement might not be possible: "We should not consider that if we don't get there tomorrow or the day after, all would be lost." | French President Francois Hollande also cautioned that an agreement might not be possible: "We should not consider that if we don't get there tomorrow or the day after, all would be lost." |
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). |
A Downing Street statement after Thursday's 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 Thursday's 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 had warned that he would use his veto if other EU countries called for any rise in EU spending. The Netherlands and Sweden backed 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. France has traditionally been a big beneficiary of EU farm support. | 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. |
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 budget round. | 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 budget round. |
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. |