POSTED: Friday, November 23, 2012 - 9:00am
UPDATED: Friday, November 23, 2012 - 9:04am
NBC News — The prospect of failure overshadows day two of a European Union budget summit in Brussels. Britain and France are pulling in opposite directions over the 27 country bloc's long term spending plans, and smaller member countries are threatening to veto the deal to make themselves heard. A tense first session left observers predicting leaders may need more time to resolve differences over spending priorities.
The E.U. budget primarily funds programs to help farming and create growth in less developed countries and amounts to only 1% of the bloc's gross domestic product. Richer countries want to reduce their contributions to the common budget during tough economic times, but poorer nations, which rely on E.U. money for development aid and economic investment, don't want spending cuts. British Prime Minister David Cameron says it's unreasonable to increase spending for 2014 through 2020 when many member states are cutting budgets at home.