EU budget: Leaders to study new proposals

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European Union leaders have suspended talks on the bloc's seven-year budget in order to give the 27 leaders time to study new proposals.

The leaders of France and Germany have already expressed doubts whether an agreement can be reached.

The European Commission had originally proposed a 5% increase in spending, but a group of countries, including Britain, argued that any rise at a time of austerity would be unacceptable.

John McManus reports.

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