10 Nov 2012

Breakdown in EU budget talks

5:48 pm on 10 November 2012

Talks in Brussels on the European Union's budget for next year have broken down.

The collapse followed the failure of negotiations between EU governments and the European parliament to agree a request for extra money to fill a funding gap for this year.

The European Commission and the European parliament wanted a 6.8% increase but most member states wanted a limit of 2.8%, arguing that it would be wrong to increase spending at a time of domestic cutbacks.

The failure of the talks will dent hopes of agreement on the 2014-2020 budget, which is up for discussion later this month, the BBC reports.

The European Union's 2012 budget was €129.1 billion, a 1.9% increase on 2011.