EU budget talks break down

BRUSSELS, Nov. 16 (UPI) -- EU budget negotiations have broken down, forcing a retreat to the 2010 budget for the time being, the head of the Parliament said.

"It's not good news not to have a budget for 2011, but we will follow procedures," which would be to have the 2010 budget continue until Parliament members agree on the next spending plan, said Jerzy Buzek, the EU Parliament chief.

EUobserver reported Tuesday Britain and the Netherlands would only discuss the 2011 budget, refusing to discuss long-term changes such as supplementary taxes.

Britain is also seeking to cap the budget increase at 2.9 percent, less than half of what members of Parliament requested.

The budget's defeat at this stage in the process means the European Commission will need to submit a new budget proposal, which would be discussed at an EU leadership summit in December.