EU budget 2011 Rejected

The European Parliament and the Member States of the European Union (EU) did not agree to the EU budget for 2011 on Monday.

It means that next year’s spending will be the same as in 2010, inflexible and disbursed in 12 equal installments while the EU’s fledgling diplomatic service may not receive funding.

The talks failed when Britain, Sweden and the Netherlands rejected the European Parliament demands for a bigger say in future spending priorities.

The Parliament offered to drop its demand for a 6.2 percent increase in the budget from last year’s 126,5 billion Euros and to back a 2.91 percent rise, the maximum that governments are ready to accept.

But diplomats said Britain, Sweden and the Netherlands did not want to discuss the parliament’s political demands over its future role in negotiations at the occasion of talks on the 2011 spending plans.

The failure is also another bad sign for the EU’s negotiating machinery, following months of quarrels this year over a bailout mechanism for euro zone countries in financial distress.

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