EU CONSIDERS UK BUDGET PROPOSAL

European Union foreign ministers are gathering in Brussels on Wednesday to discuss Britain's attempt to break the deadlock over the EU budget.
 
On Monday, Britain - which currently holds the EU presidency - suggested cuts to the rebate it receives on its contribution to the budget.
But it also suggested a reduction in the funds new member states expected.
It is the first time member states have met to discuss the proposal, which is likely to come in for heavy criticism.

The meeting promises to be an unpleasant one for British Foreign Secretary Jack Straw.
On Tuesday, country after country denounced the British government's budget plans, either for yielding too little on the rebate or for cutting too far the funds destined for the new poorer member states.

One official said he expected from this meeting an awful lot of noise and hysteria.
The gathering marks the beginning of an intense period of negotiations leading to a summit in nine days time.
The foreign ministers will decide nothing - that is left to heads of government - but they will give a signal as to how much there really is to negotiate over.

KEY POINTS OF UK PROPOSAL
 
The UK pays 8bn euros more over seven years
Total budget of 847bn euros over the period
Spending goes below 1% of EU gross national income by 2013
Cut in development aid to new member states
Cuts in rural development payments to older members
Cut in funding for EU bureaucracy
Major review of all spending, including CAP, in 2008