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Cameron: EU institutions must adjust to the 'real world'

David Cameron has said that EU institutions must adjust to the "real world" by accepting the sorts of cuts that many of its member states have accepted.

He said: "We are not going to be tough on budgets at home just to come here and sign up to big increases in European spending."

Mr Cameron said he was confident a deal is still "do-able" but insisted it would not be "at any cost".