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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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'Constructive' EU budget talks to recommence next year

The president of the European Council Herman Van Rompuy has confirmed that negotiations on the EU budget will recommence early next year.

He described the discussions as "constructive" and said he believed there was a "sufficient degree of potential convergence" to make an agreement possible.

He said the failure of the present talks to reach agreement should not be "dramatised" and that such negotiations "generally take two goes".

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