EU budget agreement "not there yet" - Hollande

PARIS Mon Feb 4, 2013 8:17am IST

France's President Francois Hollande (R) and Italy's Prime Minister Mario Monti walk together in the courtyard at the Elysee Palace after their meeting in Paris, February 3, 2013.

France's President Francois Hollande (R) and Italy's Prime Minister Mario Monti walk together in the courtyard at the Elysee Palace after their meeting in Paris, February 3, 2013.

Related Topics

PARIS (Reuters) - President Francois Hollande said on Sunday France was keen to agree the European Union's 2014-2020 budget at a summit in Brussels next week, but there was still much work to be done.

The 27-nation bloc failed to agree on its 1 trillion euro budget at a meeting in November.

"We will do everything to find an agreement at the next summit, but conditions are not there yet," Hollande told reporters, flanked by Italian Prime Minister Mario Monti.

Hollande said there was still time to reach a deal before the summit starts on Thursday.

Monti said he hoped a deal could be found on the basis of a package that European governments discussed late last year.

"I hope that the system that will follow will be fairer," Monti said.

Monti wants a reform of the EU system of rebates, arguing that Italy's contribution to the budget is out of proportion to its real wealth. Some net contributors, such as Britain, have demanded deep reductions in EU spending plans.

German Chancellor Angela Merkel has urged her EU partners on to work together to get a deal.

Hollande also voiced concern about recent strengthening of the euro against the currencies of major trading partners.

"The markets have welcomed with magnitude, with excess, via the level of the euro, the confidence they place in the countries that make up the (euro) zone," he said.

The euro last week reached its highest level in 14 months against the dollar and in 33 months against the yen.

A strengthening euro would weigh on exports from euro-zone countries, as well as reducing the cost of imports.

(Reporting by Elizabeth Pineau; Writing by Elena Berton; Editing by Robin Pomeroy and Jason Webb)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Sino-Indian Ties

REUTERS SHOWCASE

Eyeing Stocks

Eyeing Stocks

Interview - EPFO chief urges green light to buy stocks  Full Article 

Stimulus Reports

Stimulus Reports

China cenbank injects $81 bln into major banks to support economy - reports  Full Article 

Monsoon Update

Monsoon Update

Delayed retreat of monsoon rains to start this weekend  Full Article 

Financing Deal

Financing Deal

IndiGo agrees $2.6 billion aircraft finance deal with China's ICBC  Full Article 

Fed Policy Meeting

Fed Policy Meeting

Fed could hint on rate-hike plans as it prepares for policy turn  Full Article 

Grim Outlook

Grim Outlook

Sony deepens loss estimate on struggling smartphone business  Full Article 

Sugar Surplus

Sugar Surplus

India to produce surplus sugar for fifth straight year - industry body  Full Article 

Business Sentiment

Business Sentiment

China, Singapore slowdown weigh on Q3 Asia business sentiment   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage