Agricultural Subsidy

German Chancellor Dr Angela Merkel and EU President Herman Van Rompuy (right) at a crucial meeting in Brussels. Photo: AFP

European Union budget talks in deadlock as Britain threatens veto

Talks on the European Union's trillion-euro budget ended in deadlock yesterday as leaders of the bloc's 27 member states failed to overcome seemingly irreconcilable differences on how to reduce spending.

"There is no agreement," said one official at the summit.