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| Version 5 | Version 6 |
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| EU budget summit: Cameron demands further cuts | EU budget summit: Cameron demands further cuts |
| (about 1 hour later) | |
| The British Prime Minister, David Cameron, says he will not accept an EU budget deal unless further cuts are made in negotiations in Brussels. | The British Prime Minister, David Cameron, says he will not accept an EU budget deal unless further cuts are made in negotiations in Brussels. |
| European Union leaders are gathering for a two-day summit to try to strike a seven-year spending deal, after a previous meeting in November failed. | European Union leaders are gathering for a two-day summit to try to strike a seven-year spending deal, after a previous meeting in November failed. |
| But Mr Cameron said the figures being proposed "need to come down. And if they don't... there won't be a deal". | But Mr Cameron said the figures being proposed "need to come down. And if they don't... there won't be a deal". |
| The European Commission head called for "a spirit of responsibility" in talks. | The European Commission head called for "a spirit of responsibility" in talks. |
| Jose Manuel Barroso said: "Further delays will send out a very negative message at this time of fragile economic recovery. The risk is that positions will harden and will be even more difficult to overcome." | Jose Manuel Barroso said: "Further delays will send out a very negative message at this time of fragile economic recovery. The risk is that positions will harden and will be even more difficult to overcome." |
| The formal meeting has been delayed, apparently to allow more time for discussions on a compromise. | The formal meeting has been delayed, apparently to allow more time for discussions on a compromise. |
| High EU expenditure at a time of cutbacks and austerity across the continent is the main issue dividing the 27 member states. | High EU expenditure at a time of cutbacks and austerity across the continent is the main issue dividing the 27 member states. |
| 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 across the Continent. | The UK, Germany and other northern European nations want to lower EU spending to mirror the cuts being made by national governments across the Continent. |
| 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. | 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, the source said, speaking on condition of anonymity. | 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 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. |
| Compromises | Compromises |
| Scheduled to begin at 14:00 GMT on Thursday, the summit has been put back to 16:30. "We needed more time to work on the compromise proposal," an unnamed EU official told AFP news agency. | Scheduled to begin at 14:00 GMT on Thursday, the summit has been put back to 16:30. "We needed more time to work on the compromise proposal," an unnamed EU official told AFP news agency. |
| A grouping led by France and Italy wants to maintain spending but target it more at investment likely to create jobs. | A grouping led by France and Italy wants to maintain spending but target it more at investment likely to create jobs. |
| French President Francois Hollande told reporters on Sunday that conditions were "not yet in place" for a deal but also signalled that Paris was prepared to make compromises. | French President Francois Hollande told reporters on Sunday that conditions were "not yet in place" for a deal but also signalled that Paris was prepared to make compromises. |
| He and German Chancellor Angela Merkel held talks in Paris on Wednesday before attending a France-Germany football match. | He and German Chancellor Angela Merkel held talks in Paris on Wednesday before attending a France-Germany football match. |
| Mrs Merkel's spokesman said she and President Hollande had had "a short but intense meeting... to see what kind of agreement could be made". | Mrs Merkel's spokesman said she and President Hollande had had "a short but intense meeting... to see what kind of agreement could be made". |
| Mrs Merkel - seen as the powerbroker in the summit - has already acknowledged that the talks will be "very difficult". | Mrs Merkel - seen as the powerbroker in the summit - has already acknowledged that the talks will be "very difficult". |
| In Brussels, a European Parliament spokesman warned that more severe cuts would leave the commission unable to do its job as the EU integrated more deeply in response to the financial crisis. | In Brussels, a European Parliament spokesman warned that more severe cuts would leave the commission unable to do its job as the EU integrated more deeply in response to the financial 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. | "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. |
| "At the moment, there is a need for a reality check between the requests that are sent to the Commission, the Council, the Parliament, or the European Central Bank, and the budget - the means - that are given to these institutions to fulfil their commitments." | "At the moment, there is a need for a reality check between the requests that are sent to the Commission, the Council, the Parliament, or the European Central Bank, and the budget - the means - that are given to these institutions to fulfil their commitments." |
| 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. | 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 to the budget, which amounts to about 1% of the EU's overall GDP. | Germany, the UK, France and Italy are the biggest net contributors to the budget, which amounts to about 1% of the EU's overall GDP. |
| Analysts say failure to reach an agreement on its seven-year budget would mean the EU falling back on more expensive annual budgets. | Analysts say failure to reach an agreement on its seven-year budget would mean the EU falling back on more expensive annual budgets. |