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Europe's trillion-euro budget talks collapse, summit abandoned

EU budget talks hit deadlock.

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FRANKFURT AM MAIN, GERMANY: A huge euro logo stands in front of the headquarters of the European Central Bank (ECB) on April 9, 2009 in Frankfurt am Main, Germany. (Ralph Orlowski/AFP/Getty Images)

The European Union's vaunted budget talks ended in disaster today, with leaders abandoning the two-day summit with no plan on how to address the growing economic crisis or agree on a long-term budget, according to Britain's The Times

The BBC's correspondent in Brussels, Gavin Hewitt, said despite the deadlock, leaders were still trying to unite behind a statement: 

At issue is Europe's fiscal plan moving forward, a weighty subject with various EU member states in need of massive bailouts amid the specter of a bankrupting Greece. Debt-strapped Cyprus just became the fifth EU country to file for help

Angela Merkel of Germany, the bloc's largest contributor to the budget, earlier said she doubted the Brussels summit would end in agreement on a new seven-year plan for some one trillion euros, according to Reuters

Leaders from a number of countries disagreed with austerity measures called for by the UK and others, said Reuters, with Britain's David Cameron earlier criticizing EU leaders for "tinkering" around instead of getting serious about cuts, reported SKY

European Council President Herman Van Rompuy reportedly said bloc leaders will make another go at the budget in a follow-up meeting early next year, delegate sources told Reuters

The decision quickly prompted sarcastic commentary on Twitter:

The EU's last round of budget talks took place in 2005 and dragged on for six months, said Reuters

http://www.globalpost.com/dispatch/news/regions/europe/121123/europes-trillion-euro-budget-talks-collapse-summit-abandoned