Germany rejects shelving EU summit over British veto

(BERLIN) - Germany denied on Monday reports that it would cause to have a future EU summit on the bloc's seven-year budget scrapped if Britain threatened to veto a deal, and hinted it would push for a one-percent spending increase.

Government spokesman Steffen Seibert told reporters that Berlin "explicitly rejects" a report in the Financial Times, according to which Chancellor Angela Merkel said she would "seek to cancel" the November summit if London stuck to its guns.

Britain said meanwhile it has not received any message from Germany that it would force the summit to be called off, but insisted that it does not see the case for an above-inflation spending hike.

Prime Minister David Cameron said after a summit of leaders last week: "It would not be acceptable to see a huge increase in spending when budgets are being cut."

Asked if he could veto the EU budget at the summit in November, Cameron replied: "The short answer is 'Yes'."

Seibert said it was "in Germany's interest that this special summit in November succeeds."

"We are convinced that such an agreement would be a strong signal that Europe could send a signal that it is capable of acting and a signal for EU states in terms of their planning," Seibert said.

Berlin believes that the EU budget from 2014-2020 should promote "growth, jobs and competitiveness" and should also "reflect the tough consolidation efforts being made by member states" as eurozone countries slash debt levels.

Seibert said Germany was in favour of a "moderate" increase in the EU budget. When pressed, he said: "One percent would be moderate."

He went on to stress that talks were at an early stage and so negotiating positions remained fluid.

Cameron's spokesman said in London that his government has not received any message from Germany that it would torpedo the summit.

"The answer is we haven't, no. They haven't said anything," the spokesman told reporters when asked about the report.

"We've not had any such discussion."

The spokesman added: "The prime minister set out his position on the budget on Friday in the press conference (in Brussels) and he has made it clear that he is willing to do a deal on the budget in November so long as it is the right deal for British taxpayers.

"We've said that we don't see a case for increases in spending above the rate of inflation. Countries around the EU are having to make some very tough decisions on spending."

Negotiations over the EU's seven-year budget have traditionally given rise to hefty battles between the member states over how much they should pay into the pot.

In recent times, the main disagreements have been between France and Britain over the money Paris receives from the EU's Common Agricultural Policy and a rebate from the budget which Britain negotiated in 1984.

Amid signs that London is gradually distancing itself from the EU, Seibert stressed that Britain was "a member of the European Union that we hold in high regard."

Merkel will be in London in early November to meet with Cameron, the FT said. The budget summit is scheduled for November 22 and 23.