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PM defends EU budget position

David Cameron has defended the collapse of talks aimed at agreeing the EU budget, saying: "We are not going to be tough on budgets at home and sign up to big increases in European spending in Brussels."

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Sweden and Netherlands offer support to PM

David Cameron's allies for EU budget belt-tightening include Sweden and the Netherlands, who have both demanded financial cuts.

Germany, France, Finland and Austria want to freeze the maximum Brussels can draw from member states every year.

Poland lead 15 countries who are asking for budget increases - not least to preserve the scale of cash aid they receive as "net beneficiaries" from the EU kitty.

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