EU leaders face late-night budget battle
Agreement hinges on finding balance between British, German-led calls for EU cuts to match austerity of govts
Brussels: EU leaders face tough late-night negotiations on the bloc’s 2014-20 budget on Thursday under the watchful eye of a newly assertive European parliament unhappy at the prospect of major spending cuts.
In November, leaders tried and failed to narrow sharp differences and while a compromise is expected to emerge this time, there is no certainty other than that the budget talks will be long and difficult.
An agreement hinges on finding a balance between British and German-led calls for EU cuts to match the austerity of national governments, and French and Italian-led demands to ring-fence money for investment in areas that can generate jobs and growth.
The European Commission, EU’s executive arm, initially wanted a 5.0% increase in member state contributions to €1.04 trillion ($1.4 trillion) for 2014-20 but EU president Herman Van Rompuy cut that back to some €973 billion for the failed November summit.
The differences are serious enough but the situation has also been clouded by British Prime Minister David Cameron’s promise of a referendum on EU membership if he can re-negotiate London’s ties with Brussels.
“I can’t exclude that we fall for the sirens of ridicule," said Luxembourg Prime Minister Jean-Claude Juncker, Europe’s longest-serving head of government and the doyen of such gatherings after eight years chairing the euro zone finance ministers’ forum.
“We will correct the figures downwards, not upwards," Juncker said.
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