Commission rejects call for EUR 50 bn budget cut

(BRUSSELS) - The European Commission rejected on Tuesday a suggested 50-billion-euro cut in its fiercely contested 2014-20 EU budget as member states jostle for advantage ahead of a difficult summit next month.

Cyprus, the current rotating president of the EU, put up a revised version of the budget containing savings of "at least 50 billion euros," which it described as "a starting point" for member states.

"More sizeable reductions are needed in order to reach a compromise. Further reductions will require even bigger trade-offs and the need to prioritise," it said in a 'negotiating box' draft on current discussions.

The Commission wants a budget of 1.03 trillion euros ($1.33 trillion), up 5.0 percent on 2007-13, but the seven major contributor states have baulked at the increase at a time when they are having to cut spending at home.

Germany, France and Britain especially insist the EU cannot expect to get more when they have to make do with less, demanding cuts in the 2014-20 budget of 100 billion euros or more.

"This negotiating box is not supported by the Commission," it said in a statement on Tuesday.

"The Commission remains committed to its proposal, which strikes the right responsible balance in times of crisis, both in the overall amount and in the balance between policies," it said.

The budget "needs to be a tool for investment in growth and jobs," it said, adding that it would continue efforts to get an agreement at a special November 22-23 summit.

European Union president Herman Van Rompuy has warned that the budget negotiations and summit will be tough and has called for compromise on all sides.