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Daily Digit: €1 trillion EU standoff

Wednesday, Nov 21, 2012 - 01:43

Nov. 22 - 1 trillion euros is the amount of the EU's seven year budget and Europe's leaders will be battling over it in Brussels for the next few days. Ciara Sutton reports.

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A trillion euro standoff - that's today's daily digit. It's the amount EU leaders will be wrangling over for the bloc's 7 year budget starting 2014. With national government's spending across Europe being squeezed, the talks are set to be challenging. Large contributors to the EU, like Germany and the UK, want significant cuts to the budget. (SOUNDBITE) (English) UK PRIME MINISTER, DAVID CAMERON, SAYING: "We're going to be negotiating very hard for a good deal for Britain's tax payers and for Europe's tax payers and to keep the British rebate." But key beneficiaries like Poland and Spain, don't. Chances of an agreement this weekend have been played down by German Chancellor Angela Merkel. But senior EU officials have warned that failure to do so could derail euro zone stability. RBS stategist Michael Michaelides. (SOUNDBITE) (English) RATE STRATEGIST AT RBS, MICHAEL MICHAELIDES, SAYING: "It highlights the ongoing disagreements between some of the euro zone member states, which we've seen in Greece. The second point the markets are looking at is the stance of the UK and if we will see a veto similar to that we saw on the fiscal compact." And it's not just the markets which seek unity. Beligian Prime Minister Elio Di Rupo. (SOUNDBITE) (Dutch) BELGIAN PRIME MINISTER ELIO DI RUPO SAYING: "Britain's stand is regretful. Europe is above all a single market. For me, for Belgium, this is more about solidarity, peace and prosperity for all Europeans." European Council President Herman Van Rompuy has already proposed cutting the European Commission's planned budget by 80 billion euro. But Britain - along with Germany, Sweden and the Netherlands - want more. All 27 member states have a veto but Cameron, under pressure from euro-sceptics at home, has been the most vocal in threatening to wield it.

Daily Digit: €1 trillion EU standoff

Wednesday, Nov 21, 2012 - 01:43

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