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| European Leaders Gather for a Trillion-Euro Budget Debate | European Leaders Gather for a Trillion-Euro Budget Debate |
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| BRUSSELS — European Union leaders are arriving here Thursday afternoon for the start of a two-day summit where they hope to hammer out a nearly €1 trillion budget to support farming, transportation and other infrastructure, as well as big research projects for the 27-nation bloc. | BRUSSELS — European Union leaders are arriving here Thursday afternoon for the start of a two-day summit where they hope to hammer out a nearly €1 trillion budget to support farming, transportation and other infrastructure, as well as big research projects for the 27-nation bloc. |
| The budget, negotiated every seven years, represents only about 1 percent of the Union’s total economic output and around 2 percent of total public spending. But it still involves furious horse-trading as leaders focus on getting the best deal for their own countries’ citizens, rather than putting pan-European considerations first. | The budget, negotiated every seven years, represents only about 1 percent of the Union’s total economic output and around 2 percent of total public spending. But it still involves furious horse-trading as leaders focus on getting the best deal for their own countries’ citizens, rather than putting pan-European considerations first. |
| An attempt to reach an agreement in November failed, creating need for the leaders to take up the budget again now. | An attempt to reach an agreement in November failed, creating need for the leaders to take up the budget again now. |
| Enda Kenny, the prime minister of Ireland, which holds the rotating presidency of the Union, warned Irish lawmakers on Wednesday that the talks in Brussels would probably “continue into the night” and be “long and difficult.” | Enda Kenny, the prime minister of Ireland, which holds the rotating presidency of the Union, warned Irish lawmakers on Wednesday that the talks in Brussels would probably “continue into the night” and be “long and difficult.” |
| One of the complications in the current round of negotiations have been calls for budgetary rigor from leaders like Prime Minister David Cameron of Britain, who says the European Union should tighten its belt at a time when many European governments have been compelled to impose stringent budget cuts. | One of the complications in the current round of negotiations have been calls for budgetary rigor from leaders like Prime Minister David Cameron of Britain, who says the European Union should tighten its belt at a time when many European governments have been compelled to impose stringent budget cuts. |
| That approach has been met with suspicion, and even hostility, in other parts of the Union. | That approach has been met with suspicion, and even hostility, in other parts of the Union. |
| This week President François Hollande of France said he was willing to make cuts in the Union’s budget, but he pointedly warned Mr. Cameron against cutting too deeply into funds that could generate jobs. | This week President François Hollande of France said he was willing to make cuts in the Union’s budget, but he pointedly warned Mr. Cameron against cutting too deeply into funds that could generate jobs. |
| “Why should one country be able to decide in the place of 26 others?” Mr. Hollande said, referring to Britain, as he took questions from lawmakers at the European Parliament. | “Why should one country be able to decide in the place of 26 others?” Mr. Hollande said, referring to Britain, as he took questions from lawmakers at the European Parliament. |
| Mr. Cameron, for his part, prepared for the meeting with a series of telephone discussions, seeking to forge an alliance with other leaders likely to support his aim of curbing the budget. | Mr. Cameron, for his part, prepared for the meeting with a series of telephone discussions, seeking to forge an alliance with other leaders likely to support his aim of curbing the budget. |
| On Wednesday Mr. Cameron spoke to the German chancellor, Angela Merkel, and the Swedish prime minister, Fredrik Reinfeldt, and followed those discussions with phone conversations Thursday morning with the Dutch prime minister, Mark Rutte, and with Herman van Rompuy, president of the European Council who will be chairman of the summit. | On Wednesday Mr. Cameron spoke to the German chancellor, Angela Merkel, and the Swedish prime minister, Fredrik Reinfeldt, and followed those discussions with phone conversations Thursday morning with the Dutch prime minister, Mark Rutte, and with Herman van Rompuy, president of the European Council who will be chairman of the summit. |
| “There are like-minded countries among the 27 and we are going to work with our allies to try to reach agreement,” said a spokeswoman to Mr. Cameron who, in line with British government policy, could not be identified by name. Those allies include the Netherlands, Denmark and Germany, she said, adding that Mr. Cameron was expecting to have further bilateral discussions with leaders including those from Sweden, the Netherlands and Denmark. | “There are like-minded countries among the 27 and we are going to work with our allies to try to reach agreement,” said a spokeswoman to Mr. Cameron who, in line with British government policy, could not be identified by name. Those allies include the Netherlands, Denmark and Germany, she said, adding that Mr. Cameron was expecting to have further bilateral discussions with leaders including those from Sweden, the Netherlands and Denmark. |
| But others say that separate phone conversations that Chancellor Merkel has held this week with Union leaders could prove more influential. | But others say that separate phone conversations that Chancellor Merkel has held this week with Union leaders could prove more influential. |
| After the failure to reach a budget agreement in November, another impasse this time would be a severe embarrassment for the Union's leaders who have already spent years bickering over how to save the euro. Another failure also would force the Union to use provisional annual budgets costing more and could delay any further chance of a long-term agreement to 2015. | After the failure to reach a budget agreement in November, another impasse this time would be a severe embarrassment for the Union's leaders who have already spent years bickering over how to save the euro. Another failure also would force the Union to use provisional annual budgets costing more and could delay any further chance of a long-term agreement to 2015. |
| To avoid that, leaders are expected to meet into the early hours of Friday morning to hash out a deal that would limit the cash that governments give the Union a total of about €905 billion, but leave the door open to projects requiring an additional €55 billion. | To avoid that, leaders are expected to meet into the early hours of Friday morning to hash out a deal that would limit the cash that governments give the Union a total of about €905 billion, but leave the door open to projects requiring an additional €55 billion. |
| That formula could be enough to satisfy net contributor countries like Britain, which have been fighting most vigorously to freeze E.U. spending, while also accommodating the demands of countries like France to maintain generous payments for agriculture. | That formula could be enough to satisfy net contributor countries like Britain, which have been fighting most vigorously to freeze E.U. spending, while also accommodating the demands of countries like France to maintain generous payments for agriculture. |
| The pressure will be on Mr. Van Rompuy, president of the European Council, the body that organizes summits. to present a blueprint for the budget that leaders can use as a basis for their discussions. Mr. Van Rompuy will invite the leaders to make clear their complaints in a roundtable session rather than be allowed to break into small groups. | The pressure will be on Mr. Van Rompuy, president of the European Council, the body that organizes summits. to present a blueprint for the budget that leaders can use as a basis for their discussions. Mr. Van Rompuy will invite the leaders to make clear their complaints in a roundtable session rather than be allowed to break into small groups. |
| The leaders had been scheduled to dine together at around 6.30 p.m., but Mr. Van Rompuy's office said early Thursday afternoon that the start of summit had been delayed two hours, to 5.30 p.m. A delay suggests that Mr. Van Rompuy needed more time to fine-tune his proposals. But it could also give leaders time to form the kind of pre-summit huddles that Mr. Van Rompuy wanted to avoid. | The leaders had been scheduled to dine together at around 6.30 p.m., but Mr. Van Rompuy's office said early Thursday afternoon that the start of summit had been delayed two hours, to 5.30 p.m. A delay suggests that Mr. Van Rompuy needed more time to fine-tune his proposals. But it could also give leaders time to form the kind of pre-summit huddles that Mr. Van Rompuy wanted to avoid. |
| Britain and the Netherlands are likely to reiterate calls for cuts to the part of the budget that the European Union uses to employ 55,000 people, including 6,000 translators, most of them in Brussels, in running the Union’s day-to-day affairs. | Britain and the Netherlands are likely to reiterate calls for cuts to the part of the budget that the European Union uses to employ 55,000 people, including 6,000 translators, most of them in Brussels, in running the Union’s day-to-day affairs. |
| But because such uses represent only about 6 percent of all spending, leaders probably will need to prune money that had been foreseen for purposes including projects in transport, energy, and digital services that are overseen by the European Commission, the bloc’s policymaking and administrative branch. Funding for some flagship projects like a program called Global Monitoring for Environment and Security, using earth observation techniques including satellites, could also see cuts. | But because such uses represent only about 6 percent of all spending, leaders probably will need to prune money that had been foreseen for purposes including projects in transport, energy, and digital services that are overseen by the European Commission, the bloc’s policymaking and administrative branch. Funding for some flagship projects like a program called Global Monitoring for Environment and Security, using earth observation techniques including satellites, could also see cuts. |
| Viktor Orban, the Hungarian prime minister, is expected to express dissatisfaction that cuts in funding for the bloc’s least-developed regions would disproportionately affect Hungary. | Viktor Orban, the Hungarian prime minister, is expected to express dissatisfaction that cuts in funding for the bloc’s least-developed regions would disproportionately affect Hungary. |
| Mario Monti, the Italian prime minister, could reiterate his complaint that his country, a net contributor, but hit hard by economic crisis, is being asked to pay too much. | Mario Monti, the Italian prime minister, could reiterate his complaint that his country, a net contributor, but hit hard by economic crisis, is being asked to pay too much. |
| Helle Thorning-Schmidt, the Danish prime minister, could once again threaten to veto the budget if she does not win a rebate she is seeking to meet fiscal pledges her government has already made. | Helle Thorning-Schmidt, the Danish prime minister, could once again threaten to veto the budget if she does not win a rebate she is seeking to meet fiscal pledges her government has already made. |
| In a show of solidarity with member states like Spain, where the economy has cratered in the wake of the debt crisis and where unemployment is running at 26 percent, Mr. Van Rompuy is expected to announce a plan to spend several billion euros on jobs for young people. | In a show of solidarity with member states like Spain, where the economy has cratered in the wake of the debt crisis and where unemployment is running at 26 percent, Mr. Van Rompuy is expected to announce a plan to spend several billion euros on jobs for young people. |
| Even if leaders strike a deal, there may be further battles ahead with the European Parliament, which has the power to veto the overall budget. Some of the most influential figures in the Parliament have already signaled that would reject a budget that foresees spending less and less on Europe in the years ahead. | Even if leaders strike a deal, there may be further battles ahead with the European Parliament, which has the power to veto the overall budget. Some of the most influential figures in the Parliament have already signaled that would reject a budget that foresees spending less and less on Europe in the years ahead. |
| Guy Verhofstadt, the head of the alliance of liberals in the Parliament, on Wednesday called for a full-revision clause to be inserted in the budget, so that it could be increased after three years if economic conditions improve. | Guy Verhofstadt, the head of the alliance of liberals in the Parliament, on Wednesday called for a full-revision clause to be inserted in the budget, so that it could be increased after three years if economic conditions improve. |
| Martin Schulz, the president of the Parliament, said on Wednesday that he would not approve a budget that ends up widening the overall gap between the amounts of cash paid by governments and the amount that they pledge in commitments. | |
| Stephen Castle contributed reporting from London. | Stephen Castle contributed reporting from London. |
This article has been revised to reflect the following correction: | |
| Correction: February 7, 2013 | |
An earlier version of this article misspelled the surname of Martin Schulz, the president of the European Parliament. |