This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/world-europe-21377378

The article has changed 8 times. There is an RSS feed of changes available.

Version 1 Version 2
EU budget summit wrestles over cuts EU budget: Leaders edge towards compromise deal
(about 9 hours later)
EU leaders have begun budget negotiations hours later than planned, amid deep divisions over spending priorities for the next seven years. EU leaders are edging towards a compromise deal on the 2014-2020 budget after all-night talks, officials say.
The Brussels summit chair, Herman Van Rompuy, urged them to compromise and keep the EU budget focused on growth, innovation and creating jobs. A broad framework was reported to have been agreed, but hard bargaining still lies ahead at the Brussels summit.
The two-day summit aims to reach a deal that eluded the leaders last November. Leaders are studying proposals to fix the ceiling for spending at 960bn euros (£818bn), a cut of more than 12bn euros from a proposal at a November summit.
British Prime Minister David Cameron says he will not accept a deal unless further cuts are made to the draft. That meeting failed to reach agreement amid deep divisions among members over cuts - a key UK demand.
Prime Minister David Cameron said again on Thursday that he would not accept a deal unless further cuts were made.
He said the figures being proposed for 2014-2020 "need to come down - and if they don't... there won't be a deal".He said the figures being proposed for 2014-2020 "need to come down - and if they don't... there won't be a deal".
Any one of the 27 member states can veto a budget deal - a fact which makes the negotiations all the more difficult.Any one of the 27 member states can veto a budget deal - a fact which makes the negotiations all the more difficult.
The proposal on the table right now would represent a victory for those countries, like Britain, who wanted the EU budget to be kept as low as possible. If it is agreed.
Earlier on Thursday leaders explored possible compromises in small groups. Where it's not a victory is for those who want a more modern budget that has more funding to tackle the problems of growth and unemployment across Europe.
Agriculture spending still makes up a huge proportion of the budget.
As one campaign group said - Europe will spend more on cows than on the young unemployed.
Talks began later than scheduled on Thursday evening after leaders explored possible compromises in small groups earlier in the day.
Clash of prioritiesClash of priorities
One EU official told Reuters news agency on Friday: "We feel pretty confident that we have the framework for a deal. The deal is not completely finalised, but we feel sure it will be done today."
EU sources say the new proposal will cut transport, energy and telecommunications projects, as well as pay and perks for EU staff.
If agreed, the 12bn euro cut would make this the first multi-annual EU budget to see a net reduction.
The summit pits Mr Cameron and some northern European allies - who want EU spending reined in tightly - against mostly eastern and southern European countries who want to protect the big budget areas of agriculture and cohesion funding for the poorest regions.The summit pits Mr Cameron and some northern European allies - who want EU spending reined in tightly - against mostly eastern and southern European countries who want to protect the big budget areas of agriculture and cohesion funding for the poorest regions.
France's President Francois Hollande, a socialist, champions European "solidarity" and opposes the deeper cuts urged by Mr Cameron. Mr Hollande signalled some readiness to compromise, but said he would not accept a budget that "disregards agriculture and ignores growth".France's President Francois Hollande, a socialist, champions European "solidarity" and opposes the deeper cuts urged by Mr Cameron. Mr Hollande signalled some readiness to compromise, but said he would not accept a budget that "disregards agriculture and ignores growth".
France is the biggest beneficiary from the EU's Common Agricultural Policy, which accounts for about one-third of the entire budget.France is the biggest beneficiary from the EU's Common Agricultural Policy, which accounts for about one-third of the entire budget.
Mr Cameron met his counterparts from Denmark, the Netherlands and Sweden - leaders who are potential allies in the tough negotiations. The Commission - the EU's executive body - had originally wanted a budget ceiling of 1.025tn euros for 2014-2020, a 5% increase. In November that ceiling was trimmed back to 973bn euros, equivalent to 943bn euros in actual payments.
Mr Cameron also had a separate meeting with German Chancellor Angela Merkel, Mr Van Rompuy and EU Commission President Jose Manuel Barroso. President Hollande failed to turn up for that meeting because of "scheduling difficulties", UK officials said.
The Commission - the EU's executive body - had originally wanted a budget ceiling of 1.025tn euros (£885bn; $1.4tn) for 2014-2020, a 5% increase. In November that ceiling was trimmed back to 973bn euros, equivalent to 943bn euros in actual payments.
But with other EU spending commitments included, that would still give an overall budget of 1.011tn euros.But with other EU spending commitments included, that would still give an overall budget of 1.011tn euros.
The UK, Germany and other northern European nations want to lower EU spending to mirror the cuts being made by national governments.The UK, Germany and other northern European nations want to lower EU spending to mirror the cuts being made by national governments.
An EU source told BBC News any extra cut would probably be made to growth-related spending in areas such as energy, transport, the digital economy and research. The biggest spending areas - agriculture and regional development - are largely ring-fenced because of strong national interests, an EU source told the BBC.
The biggest spending areas - agriculture and regional development - are largely ring-fenced because of strong national interests, the source said, speaking on condition of anonymity.
The budget amounts to about 1% of the EU's overall GDP - it is dwarfed by the combined national budgets.The budget amounts to about 1% of the EU's overall GDP - it is dwarfed by the combined national budgets.
Parliament's voiceParliament's voice
The BBC's Europe editor Gavin Hewitt notes that whatever is agreed has still to go to the European Parliament, and MEPs are big backers of EU spending.The BBC's Europe editor Gavin Hewitt notes that whatever is agreed has still to go to the European Parliament, and MEPs are big backers of EU spending.
On Twitter the parliament's president, German socialist Martin Schulz, warned that "funding for food banks is to be cut by half, even though they are providing more and more people with their only meal of the day".
And he warned the EU leaders that MEPs would reject an austerity budget that cut "the investment which people now need more than ever".
The summit was to have begun at 14:00 GMT on Thursday, but the formal session did not get under way until 19:45.The summit was to have begun at 14:00 GMT on Thursday, but the formal session did not get under way until 19:45.
Mrs Merkel - seen as the main powerbroker in the summit - has already acknowledged that the talks will be "very difficult". German Chancellor Angela Merkel - seen as the main powerbroker in the summit - had already acknowledged that the talks would be "very difficult".
A European Parliament spokesman warned that more staffing cuts would leave the EU Commission unable to do its job, as EU institutions integrated further and took on new responsibilities in response to the debt crisis. One European Parliament spokesman warned that more staffing cuts would leave the EU Commission unable to do its job, as EU institutions integrated further and took on new responsibilities in response to the debt crisis.
"How can we imagine that an EU institution can ensure a proper banking union with a budget that is cut by whatever billions in figures we hear, here and there?" said spokesman Olivier Bailly.
The split in the EU reflects the gap between richer European countries and those that rely most on EU funding.The split in the EU reflects the gap between richer European countries and those that rely most on EU funding.
The argument for higher spending is supported by many countries that are net beneficiaries, including Poland, Hungary and Spain.The argument for higher spending is supported by many countries that are net beneficiaries, including Poland, Hungary and Spain.
Others, mostly the big net contributors, argue it is unacceptable at a time of austerity. Germany, the UK, France and Italy are the biggest net contributors.Others, mostly the big net contributors, argue it is unacceptable at a time of austerity. Germany, the UK, France and Italy are the biggest net contributors.
Failure to reach agreement on the seven-year budget would mean the EU rolling over annual budgets - a method that would be more expensive and would complicate long-term projects.Failure to reach agreement on the seven-year budget would mean the EU rolling over annual budgets - a method that would be more expensive and would complicate long-term projects.