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EU nations far apart on budget but summit grinds on | EU nations far apart on budget but summit grinds on |
(about 1 hour later) | |
European leaders will resume gruelling EU budget negotiations shortly amid signs that a deal may be out of reach. | European leaders will resume gruelling EU budget negotiations shortly amid signs that a deal may be out of reach. |
The late-night talks were adjourned until midday on Friday (11:00 GMT). | The late-night talks were adjourned until midday on Friday (11:00 GMT). |
A revised proposal from summit chairman Herman Van Rompuy keeps the spending ceiling in place but reallocates funds. | A revised proposal from summit chairman Herman Van Rompuy keeps the spending ceiling in place but reallocates funds. |
UK Prime Minister David Cameron told reporters in Brussels on Friday that "it isn't a time for tinkering" with the EU's 2014-2020 budget. "We need unaffordable spending cut," he said. | UK Prime Minister David Cameron told reporters in Brussels on Friday that "it isn't a time for tinkering" with the EU's 2014-2020 budget. "We need unaffordable spending cut," he said. |
Earlier, German Chancellor Angela Merkel said she doubted an agreement could be reached at this meeting. | Earlier, German Chancellor Angela Merkel said she doubted an agreement could be reached at this meeting. |
On Thursday the opening of the summit was delayed for three hours because of stark differences over the budget plans. | On Thursday 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, mostly the big net contributors, say it is unacceptable at a time of austerity. | Most EU members support an increase in the budget but several countries, mostly the big net contributors, say it is unacceptable at a time of austerity. |
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. | |
'A lot of detail' | 'A lot of detail' |
The revised plan from European Council President Van Rompuy keeps a total spending ceiling of 973bn euros (£783bn; $1.2tn). But the cuts to cohesion spending - money for Europe's poorer regions - and to the agriculture budget would not be as deep. The cuts to cohesion would be 11bn euros less and for agriculture 7.7bn euros less. | The revised plan from European Council President Van Rompuy keeps a total spending ceiling of 973bn euros (£783bn; $1.2tn). But the cuts to cohesion spending - money for Europe's poorer regions - and to the agriculture budget would not be as deep. The cuts to cohesion would be 11bn euros less and for agriculture 7.7bn euros less. |
Other spending items would be cut further to compensate, but there is no change in the proposed levels of administration costs - something which the UK may find unacceptable. | Other spending items would be cut further to compensate, but there is no change in the proposed levels of administration costs - something which the UK may find unacceptable. |
A top aide to Mr Van Rompuy, Richard Corbett, said the adjustments "reflect the large majority view of what came out of the bilateral talks" on Thursday. | A top aide to Mr Van Rompuy, Richard Corbett, said the adjustments "reflect the large majority view of what came out of the bilateral talks" on Thursday. |
"What he put on the table was already a reduction compared with the existing budget," covering 2007-2013, he told the BBC. | "What he put on the table was already a reduction compared with the existing budget," covering 2007-2013, he told the BBC. |
He said a deal "could still be put together, but there is a lot of detail to be gone through". | He said a deal "could still be put together, but there is a lot of detail to be gone through". |
Earlier, Mrs Merkel said "I think we're advancing a bit, but I doubt that we will reach a deal". | Earlier, Mrs Merkel said "I think we're advancing a bit, but I doubt that we will reach a deal". |
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. |
'Not happy' | 'Not happy' |
The EU Commission, which drafts EU laws, has called for an increase of 4.8% on the 2007-2013 budget - a position supported by the European Parliament and many countries which are net beneficiaries, including Poland, Hungary and Spain. | The EU Commission, which drafts EU laws, has called for an increase of 4.8% on the 2007-2013 budget - a position supported by the European Parliament and many countries which are net beneficiaries, including Poland, Hungary and Spain. |
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," Mr Cameron said about Mr Van Rompuy's offer. | "No, I'm not happy at all," Mr Cameron said about Mr Van Rompuy's offer. |
A Downing Street statement said Mr Cameron had stressed the importance of the UK keeping its budget rebate, worth 3.5bn euros in 2011. | A Downing Street statement 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. 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 multi-year budget. | 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 multi-year budget. |
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. |