The summit talks in Brussels were suspended overnight after less than
an hour and a half, having already begun hours late on Thursday due to
the vast differences on the need for cuts between the bloc's have and have-not
nations. The negotiations were scheduled to resume at 11.00 on Friday once
delegates from the 27 member nations have had time to examine new proposals on
the 2014-2020 budget submitted by EU president Herman Van Rompuy. But with an
increasingly eurosceptic Britain threatening to wield its veto, and splits
throughout the EU over the level of spending, German Chancellor Angela Merkel
warned that any deal may have to wait.
"I think we're advancing a bit, but I doubt that we will reach a deal," Mrs
Merkel said as she and her fellow leaders left the first session of talks.
French President Francois Hollande also warned that failure to reach a deal was
increasingly likely. ....Strange times.... Few articles (and even less TV
coverage) spend much time talking about the other nations seeking a halt to
spending and paint a picture of a totally isolated Cameron. More distressing is
the lack of coverage of what the people imprisoned in the EUSSR actually think
and want. Do not forget that the referenda that were held on the consitution and
Masstricht only passed by the smallest margins. Britain is NOT isolated in its
opposition to the accelerating creep towards the United States of Republican
Europe, and the press has a moral duty to point this out - the pro Federalist
politicians are the ones who are isolated, strutting as they do without a
mandate from their hard pressed electors....Enough of this nonsense...VOTE OUT
of the EU!!!!
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Angela Merkel: we might need another Summit
Angela Merkel has just arrived at the Justus Lipsius building in Brussels, and suggested that another Summit will be needed to resolve the budget row.
The German chancellor added that failure to reach agreement today over spending from 2013-2020 would not be "dramatic".
10.10am GMT
Finnish PM: It's going to be difficult
More leaders have arrived at the summit meeting in Brussels and there is little sign of a breakthrough.
Jyrki Katainen, prime minister of Finland, warned the press pack that it would be "difficult" to reach a deal on the EU budget deal today, adding:
everything is open.
And the prime minister of Sweden, Fredrik Reinfeldt, indicated he was in for the long haul:
I am not in a hurry. It will take a long time.
Reinfeldt had previously said he would not accept Sweden being hit with a larger budget increase than other richer nations.
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.
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.
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.
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.
Continue reading the main story
Possible outcomes
A deal after intense negotiations which may continue into the weekend
Failure to agree and a follow-up budget summit
If no agreement is reached by the end of 2013, the 2013 budget ceilings will be rolled over into 2014 with a 2% inflation adjustment, amid uncertainty over long-term EU projects
Flanders: Dealing in small change
Viewpoints: UK role in EU
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.
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.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
More from Angela Merkel this morning. She says it doesn't look like there'll be a decision today, but that it wouldn't be "dramatic" if the can was kicked down the road a bit:
We had the opportunity to study the proposals of Mr Van Rompuy last night. I believe that we won't get where we want to be in this round either, which is a unanimous decision. We will discuss this now.
I have always said that it wouldn't be dramatic if today were only the first step, we will see in the next hours. I think the positions are still far apart and if we need a second round we will take the time to do it.
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