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

REUTERS SHOWCASE

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Fire Accident

Fire Accident

Firecracker market up in flames near Delhi  Video 

Yahoo Result

Yahoo Result

Yahoo ekes out Q3 revenue gain despite display ad weakness  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Reuters India Mobile

Reuters India Mobile

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