Press conference by Herman Van Rompuy and Jose Manuel Barroso after the November EU Summit.
Related EurActiv article: [ Ссылка ]
The failure to agree on the next EU budget at today's extraordinary summit leaves Germany with powerful negotiating leverage over the UK for the crucial summit on banking union scheduled in December, EurActiv has learned.
Leaders seeking compromise on a new version of the EU's long-term budget (2014-2020), formulated by Council President Herman Van Rompuy, will now seek to square the circle over the budget in February 2013.
Diplomatic manoeuvres from Berlin
Several sources told EurActiv that it suited Germany's Chancellor Angela Merkel to postpone a budget deal until next year, as she has positioned herself towards UK Prime minister, David Cameron.
The sources explained that offering Cameron her support on further budget cuts after the December summit might help to sweeten the UK's agreement to banking union.
If Merkel would have helped Cameron achieve an acceptable outcome in advance, there is a danger Germany would receive nothing in return for its assistance.
The idea tallies with the fact that EU leaders were 'very close' to agreement for the budget 2014-2020 on the basis of the latest proposal by Council President Herman Van Rompuy, Cyprus Presidency sources told EurActiv.
It also explained a series of sophisticated diplomatic manoevres emanating from Berlin during the summit, which left Germany's partners baffled by Merkel's positioning.
