Saturday, November 10, 2012

EU budget talks break down as cash-strapped member states refuse to plug £6.7 billion funding shortfall

Negotiations over next year's European Union budget have collapsed following a dispute between member states and the European Commission over payment of a £7 billion funding shortfall.

Cash-strapped member states have refused to cover the huge funding black hole for 2012 which the European Commission has requested.

The talks, which essentially ended before they began, could be a sign of trouble ahead for longer-term EU budget issues.