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EU: Thorning rejects new Rompuy budget

Doubts whether the EU budget can be agreed at the current meeting

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Following consultations with all 27 EU member heads of state and government, the EU President Herman van Rompuy quickly produced a new budget proposal early this morning, but the proposal has failed to win acceptance.

“Seen from a Danish point of view, it is not satisfactory,” Prime Minister Helle Thorning-Schmidt said adding: “Our conclusion is that there is still a lot to fight for and we are far from agreeing on a budget.”

The new budget proposal does not introduce new savings measures as required by several countries. Most importantly for Denmark, it does not include the DKK1.1 billion rebate that the Danish government has demanded, and said it will veto the budget if it does not get.

Van Rompuy’s new attempt at a budget juggles some EUR19 billion – with EUR11 billion being added to the cohesion budget and EUR 8 billion in increased agricultural subsidies.

Negotiations on the new proposal are due to resume at noon today.

But following yesterday’s meetings, German Chancellor Angela Merkel has suggested that member countries may not reach agreement on the 2014-2020 framework budget at the current summit, but may need a further summit on the issue.

“I think we are advancing a little, but I doubt whether we will reach a result,” Merkel said.

“I'm not happy at all," British Prime Minister David Cameron said.

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