LONDON (AFX) - Big cuts to the proposed 1 trln eur EU budget will be tabled today in an attempt to broker a deal between main contributing countries such as Germany and big aid recipients from southern and eastern Europe, the Financial Times reported.
The compromise plan by the EU's Luxembourg presidency would sharply reduce spending on aid to poor regions, research, transport and education.
It also includes a proposal to cap the UK's EU budget rebate, probably at around 4.6 bln eur bln a year. Without a cap it would rise towards 8 bln.
Luxembourg has the task of settling the EU's budget for 2007-13 at a summit in mid-June.
Nicolas Schmit, Luxembourg's Europe minister, was quoted as telling the newspaper: "Everyone will have to share some pain, otherwise you will never end up with an acceptable solution."
The FT said the proposed compromise includes: Cutting 50 bln eur off the commission's plans to raise EU competitiveness; cutting 40 bln from the regional aid budget; capping the UK rebate; limiting the big net contributions of Germany, the Netherlands and Sweden.