STOCK MARKET WATCH -- Black Friday, 23 November 2012

[Ghost Dog]

32. Stalemate in Brussels as EU fails to agree budget

UK PM Cameron claims victory over defence of rUK ebate but is accused of ‘blackmail’

The European Union was in disarray tonight after its 27 leaders failed to reach agreement on a new €970bn budget at a two-day summit which collapsed amid acrimony.

David Cameron was accused of trying to “blackmail” other EU leaders but he was not the only stumbling block to a deal for 2014-20 and did not need to wield his veto. Crucially, there was no agreement between France, anxious to preserve farm subsidies, and Germany, which backed Britain’s call for deeper EU spending cuts along with the Netherlands and Sweden...

... European leaders will resume talks on the budget early next year. To retain Germany’s support, Mr Cameron will be under pressure to approve plans for banking union in the eurozone at another EU summit next month...

/... http://www.independent.co.uk/news/uk/politics/stalemate-in-brussels-as-eu-fails-to-agree-budget-8342986.html

... The summit has been effectively deadlocked by a dispute between net contributors to the budget – including Britain and Germany – and those who get more from the EU than they pay into it. France, a net contributor, has also complicated talks by opposing any cuts in the Common Agricultural Policy of farm subsidies.

Hannes Swoboda, the president of the Socialists and Democrats group in the parliament, said the summit had been “disastrous” and blamed Mr Cameron

"Regarding the additional cuts, it is unacceptable that the majority of member countries are letting themselves be blackmailed by David Cameron who is permanently threatening to block progress in the EU,” he said.

"The British prime minister, who is considering leading the UK out of the EU, is having more impact on the future of the EU than those who are committed to strengthening the EU and fulfilling their obligations." ...

/... http://www.telegraph.co.uk/news/politics/9699134/EU-leaders-accuse-Cameron-of-sabotaging-budget-deal.html

... The manner of the collapse of the summit is a highly significant moment for Cameron and will strengthen his position in the EU. He had arrived in Brussels on Thursday as an isolated figure after criticising the handling of the eurozone crisis by the bloc's leaders.

But the prime minister has improved his relations with Merkel after he was seen to take a constructive stance in the negotiations. The German chancellor did not agree with his call for €50bn in cuts to the budget. But she was impressed with the way he engaged in the negotiations.

Merkel was deeply irritated with the negotiating tactics of Van Rompuy and José Manuel Barroso, the president of the European commission. Berlin believes that they tried to structure the negotiations to isolate Britain. One UK source said: "Herman Van Rompuy has fucked this up."...

/... http://www.guardian.co.uk/world/2012/nov/23/eu-summit-breaks-up-budget