Britain and France fail to resolve EU budget row

[maddezmom]

38 minutes ago



PARIS (Reuters) - Britain and France failed on Tuesday to resolve major differences over the European Union's long-term budget, leaving the bloc facing financial deadlock as well as a political crisis over its constitution.

British Prime Minister Tony Blair said it was hard to see how the differences could be bridged after talks with French President Jacques Chirac, dimming hopes of an agreement on the 2007-2013 budget at an EU summit on Thursday and Friday.

"The meeting I've just had with President Chirac was immensely amicable but obviously there's sharp disagreement," Blair told a news conference after meeting Chirac at the president's Elysee Palace.

"I think it is difficult to see these differences being bridged, but of course you know we continue to talk," he said.

France and other EU member states want Britain to compromise over its annual budget rebate from EU coffers.

~snip~
more: http://news.yahoo.com/news?tmpl=story&u=/nm/20050614/wl_nm/eu_budget_dc_7