Grammy-winning bassist injured in Swiss bus crash












GENEVA (AP) — Grammy-winning jazz bassist Marcus Miller and several members of his band were injured when their bus overturned Sunday on a busy highway in Switzerland, killing the driver, police said.


The German-registered private bus tipped over as it drove into a bend on the A2 highway in central Switzerland and came to a rest on its side, police in the canton (state) of Uri said. The bus was carrying 13 people — two drivers and 11 members of the Marcus Miller Band, including Miller.












Over his career, the bassist has worked with jazz greats such as Miles Davis, Dizzy Gillespie and Wayne Shorter, according to his website. He won two Grammys, his first coming in 1991 for Best Rhythm & Blues Song (“Power of Love”) along with Luther Vandross and Teddy Vann, and the second came in 2001 for Best Contemporary Jazz Album (“M2″).


The band was on its way from Monte Carlo to the Dutch town of Hengelo, the next stop on the American band’s tour, where it was due to perform Monday.


The driver who was at the wheel at the time of the accident sustained fatal injuries. Police spokesman Karl Egli said the 12 passengers were injured and taken to hospitals, but none had life-threatening injuries.


Miller was discharged from the hospital later Sunday, as were fellow band members Alex Han and Kris Bowers, but some other band and crew members were being kept in hospitals overnight, according to a post on Miller’s official Facebook page.


The cause of the accident was not immediately clear. Police believe no other vehicles were involved.


Entertainment News Headlines – Yahoo! News


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Catalan election weakens bid for independence from Spain












BARCELONA, Spain (Reuters) – Separatists in Spain’s Catalonia won regional elections on Sunday but failed to get the resounding mandate they need to push convincingly for a referendum on independence.


Catalan President Artur Mas, who has implemented unpopular spending cuts in an economic crisis, had called an early election to test support for his new drive for independence for Catalonia, a wealthy region in northeastern Spain.












Voters handed almost two thirds of the 135-seat local parliament to four different Catalan separatist parties that all want to hold a referendum on secession from Spain.


But they punished the main separatist group, Mas’s Convergence and Union alliance, or CiU, cutting back its seats to 50 from 62. That will make it difficult for Mas to lead a united drive to hold a referendum in defiance of the constitution and the central government in Madrid.


“Mas clearly made a mistake. He promoted a separatist agenda and the people have told him they want other people to carry out his agenda,” said Jose Ignacio Torreblanca, head of the European Council on Foreign Relations’ Madrid office.


The result will come as a relief for Spanish Prime Minister Mariano Rajoy, who is battling a deep recession and 25 percent unemployment while he struggles to cut high borrowing costs by convincing investors of Spain’s fiscal and political stability.


Mas, surrounded by supporters chanting “independence, independence”, said he would still try to carry out the referendum but added that, “it is more complex, but there is no need to give up on the process.”


Resurgent Catalan separatism had become a major headache for Rajoy, threatening to provoke a constitutional crisis over the legality of a referendum just as he is trying to concentrate on a possible international bailout for troubled Spain.


Frustration over the Spanish tax system, under which Catalonia shares some of its tax revenue with the rest of the country, has revived a long-dormant secessionist spirit in Catalonia. Catalans believe if they could invest more of their taxes at home their economy would prosper.


Mas had tried to ride the separatist wave after hundreds of thousands demonstrated in the streets in September, demanding independence for their region, which has its own language and sees itself as distinct from the rest of Spain.


In a speech to supporters on Sunday night, Mas recognized that he had lost ground and though CiU is still the largest group in Catalan‘s parliament, he said would need the support of another party to govern and to continue pushing through tough economic measures.


“We’ve fallen well short of the majority we had. We’ve been ruling for two years under very tough circumstances,” he said.


Traditional separatists the Republican Left, or ERC, won the second biggest presence in the Catalan parliament, with 21 seats. The Socialists took 20 seats. And Rajoy’s center-right People’s Party won 19.


Three other parties, including two that want a referendum on independence, split the remaining 25 seats. ECFR’s Torreblanca said the Catalan elections were similar to those around Europe in that economic woes have benefited marginal political groups, while larger, traditional parties have lost ground.


MAS MADE BIG BET


Mas’s bet on separatism may have helped out the big winner of Sunday’s election, the Republican Left, which more than doubled its seats in the Catalan parliament to 21 from 10,


“He talked about it so much that he ended up helping the only party that has always been for independence, which is the Republican Left,” said political analyst Ismael Crespo at the Ortega y Gasset research institute.


A legal referendum would require a change to the constitution, and Spain’s main parties in the national parliament, the Socialists and Rajoy’s People’s Party, have shown no appetite for that.


Mas’s CiU had traditionally been a pro-business moderate nationalist party that fought for more autonomy and self-governance for Catalonia without breaking away from Spain.


Mas broke with that tradition in September when he made a big bet on a referendum.


Catalonia, with 7.5 million people, is more populous than Denmark. Its economy is almost as big as Portugal’s and it generates one fifth of Spanish gross domestic product.


After a decade of overspending during Spain’s real estate boom, Catalonia and most of the country’s other regions are struggling to pay state workers and meet debt payments. Unemployment has soared and spending on hospitals and schools has been cut.


Mas was one of the first Spanish leaders to embark on harsh austerity measures after Catalonia’s public deficit soared and the regional government was shunned by debt markets.


Josep Freixas, 37 and unemployed, voted for CiU but recognized the party had lost seats “because people have been really affected by the spending cuts and by the crisis.”


At CiU headquarters on Sunday night Freixas carried a rolled up pro-independence flag – a single star against yellow and red stripes – that has become a symbol of the separatist movement.


Turnout was very high in the election, 68 percent, 10 percentage points higher than in the previous vote two years ago.


Many Catalans are angry that Rajoy has refused to negotiate a new tax deal with their largely self-governing region. Annually, an estimated 16 billion euros ($ 21 billion) in taxes paid in Catalonia, about 8 percent of its economic output, is not returned to the region.


Home to car factories and banks and birthplace of surrealist painter Salvador Dali and architect Antoni Gaudi, the region also has one of the world’s most successful football clubs, FC Barcelona.


Wary that separatism could spread to the Basque Country and beyond, Rajoy said this week that the Catalan election was more important than general elections.


(The story corrects billion to million in 20th paragraph.)


(Editing by Myra MacDonald and Sandra Maler)


Economy News Headlines – Yahoo! News


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Israel successfully tests missile defense system












JERUSALEM (AP) — Israel successfully tested its newest missile defense system Sunday, the military said, a step toward making the third leg of what Israel calls its “multilayer missile defense” operational.


The “David’s Sling” system is designed to stop mid-range missiles. It successfully passed its test, shooting down its first missile in a drill Sunday in southern Israel, the military said.












The system is designed to intercept projectiles with ranges of up to 300 kilometers (180 miles).


Israel has also deployed Arrow systems for longer-range threats from Iran. The Iron Dome protects against short-range rockets fired by militants in the Gaza Strip and Hezbollah guerrillas in Lebanon. Iron Dome shot down hundreds of rockets from Gaza in this month’s round of fighting.


Israeli Defense Minister Ehud Barak said the success of Iron Dome highlighted the “immense importance” of such systems.


“David’s Sling,” also known “Magic Wand,” is developed by Israel’s Rafael Advanced Defense Systems and U.S.-based Raytheon Co. and is primarily designed to counter the large arsenal of Hezbollah rockets in Lebanon.


The military said the program, which is on schedule for deployment in 2014, would “provide an additional layer of defense against ballistic missiles.”


The next generation of the Arrow, now in the development stage, is set to be deployed in 2016. Called the Arrow 3, it is designed to strike its target outside the atmosphere, intercepting missiles closer to their launch sites. Together, the two Arrow systems would provide two chances to strike down incoming missiles.


Israel also uses U.S.-made Patriot missile defense batteries against mid-range missiles, though these failed to hit any of the 39 Scud missiles fired at Israel from Iraq In the first Gulf War 20 years ago. Manufacturers say the Patriot system has been improved since then.


Middle East News Headlines – Yahoo! News


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Nokia imaging chief to quit












HELSINKI (Reuters) – Nokia‘s long-time imaging chief Damian Dinning has decided to leave the loss-making cellphone maker at the end of this month, the company said in a statement.


The strong imaging capabilities of the new Lumia smartphone models are a key sales argument for the former market leader, which has been burning through cash while losing share in both high-end smartphones and cheaper handsets.












Nokia’s Chief Executive Stephen Elop has replaced most of the top management since he joined in late 2010 and Dinnig is the latest of several executives to leave.


Dinning did not want to move to Finland as part of the phonemakers’ effort to concentrate operations and will join Jaguar Land Rover to head innovations in the field of connected cars, he said on Nokia’s imaging fan site PureViewclub.com.


(Reporting By Tarmo Virki, editing by William Hardy)


Tech News Headlines – Yahoo! News


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“Lincoln” Women: How Sally Field and Gloria Reuben Stole Daniel Day-Lewis’ Show












LOS ANGELES (TheWrap.com) – Steven Spielberg‘s “Lincoln” is, on the face of it, a standard “great man” biopic. Basked in a honeydew light, overflowing with sage advice, Daniel Day-Lewis‘ Great Emancipator is depicted as constantly and self-consciously speaking to the ages well before he belongs to them.


But let us now praise the film’s not-as-famous women. For what rescues “Lincoln” from bombast are the slier and subtler performances by a trio of fantastic and often under-utilized actresses – Sally Field, Gloria Reuben and S. Epatha Merkerson.












Each one uses her limited screen time to etch a devastating portrait of the limitations that faced women in a male-dominated society. After all, if the legislators debating the merits of the 13th Amendment in the movie fret openly that abolishing slavery will begin a slippery slope to black enfranchisement, they seem even more horrified at the prospect that it one day might lead to granting women the right to vote.


Though some critics have griped about Spielberg’s penchant for speechifying in “Lincoln,” there has been near universal praise for Day-Lewis and for Tommy Lee Jones’ work as the wily Thaddeus Stevens. Field’s take on First Lady Mary Todd Lincoln – a woman Louis C.K. quipped on “Saturday Night Live” recently was “historically insane” – has been more divisive.


In TheWrap, for instance, Steve Pond wrote, “Sally Field may well be nominated for Supporting Actress for her Mary Todd Lincoln, but to me her hysteria was one of the least-successful parts of the film.”


Yet Field’s work is in many ways more revelatory than that of Day-Lewis. True, the Irish-Anglo acting god daringly gives the 16th president a historically accurate high voice and indelibly paints a picture of a great orator with an outhouse sense of humor, but his modifications are slight tweaks to the Lincoln myth. Field’s interpretation is a whole-scale reinvention.


Field’s Mary is privately unhinged, true. But she is also a smooth Washington operator, comfortable sparring with Stevens over her White House redecorating and forcibly pressuring her husband to carry the 13th Amendment to the finish line while wielding little more than a fan.


Even her mania is rooted in the death of her young son Willy; an empathetic anchor that keeps Mary from becoming simply the backwoods, social-climbing hysteric she’s been portrayed as in the past.


In screenwriter Tony Kushner, Field finds an eager co-conspirator. As Kushner confessed on NPR, the Lincolns had a turbulent relationship in part because of Abraham Lincoln’s emotional coldness.


“People always think about Mary as being difficult and she absolutely was, but Lincoln wasn’t easy either,” Kushner said. “He was remote and complicated and rather interestingly fond of telling her things that would upset her horribly, like these dreams that he kept having and he would leave her kind of in a state night after night, telling her that he was having these kind of scary dreams.


It’s an enormously complicated relationship and the family is a tragic family.”


The only false note in an otherwise galvanizing portrayal, is having Mary deliver a line that is a too historically self-aware.


“All anyone will remember about me was that I was crazy and ruined your happiness,” Mary says at one point – to which my companion let forth a large guffaw.


Field who packed 25 pounds onto her slender frame and allowed the camera to scan her creased face is a revelation – it’s a reminder that the plucky star of “Norma Rae” is good for more than Boniva ads.


But Mary Todd Lincoln isn’t the only female who elbows her way into this big screen men’s club. Gloria Reuben‘s Elizabeth Keckley is also a marvel.


Dramaturgically it’s a thankless role with Reuben’s freed slave seamstress frequently used as a stand-in for all-antebellum African American suffering. Yet Reuben grounds the performance in a simmering fury and heartbreak, using her eyes to register the peigns of hurt that greets the racist slights Keckley is exposed to on a daily basis.


Her conversation in the White House portico with Daniel Day-Lewis about the meaning of emancipation is a bravura moment – a reminder of just how long a walk to freedom 19th century blacks faced.


Likewise, S. Epatha Merkerson‘s Lydia Smith is perhaps the greatest master class in doing a lot with a little since Judi Dench captured a Best Supporting Actress Oscar in 1998 for her eight-minute cameo in “Shakespeare in Love.”


Smith, the housekeeper and (spoiler alert) common-law wife of Thaddeus Stevens, has two fleeting scenes. In one, she gently removes Jones’ coat as he enters their Washington, D.C., home after the amendment passes, in the other she reads the constitutional addition aloud in bed to her secret-paramour. It is, in the words of another Kushner play, a reminder that “the world only spins forward.”


Indeed, the entire film represents a major step forward for Spielberg whose earlier boy’s adventures were largely all-male affairs. Aside from Embeth Davidtz’s frightened maid in “Schindler’s List,” Whoopi Goldberg’s martyr-like Celie in “The Color Purple” and Karen Allen’s fiery adventurer in “Raiders of the Lost Ark,” the Spielberg women are a weightless bunch. Even great actresses like Julianne Moore in “The Lost World” are given gossamer thin screen time.


Here, transported by Kushner’s words, he allows these women to step forward out of the shadows and into history. Next time maybe he’ll let them take center stage.


Movies News Headlines – Yahoo! News


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First Person: Unemployed, Disabled and Hungry for Work












Five million Americans are among the long-term unemployed–those without a job for 27 weeks or longer–according to the Bureau of Labor Statistics. Another 7.3 million are looking for work, while the unemployment rate sits at 7.9 percent. Numbers aside, individual stories illustrate how America is affected. To see how joblessness hits home, Yahoo News asked unemployed workers to share their job-hunting stories. Here’s one.


FIRST PERSON | I am 40 and live in Racine, Wis. I have been unemployed since I was 33. I try to find work, but I’ve been disabled since 27, and I do not collect Social Security or other income. On job applications, when I am asked if I have any disabilities, I answer yes.












I have even tried to travel to different states for employment. I am seeking employment where I can. I have tried Lowe’s, Home Depot and other similar stores. All I get are letters saying I do not qualify for employment.


By trade, I am a tattoo artist, a job I have been very good at until I became disabled. I have shoulder impingement syndrome, which consists of some of the following: torn ligaments, torn tendons, bone spurs, bursitis and arthritis.


And constant pain. I feel the weather. I hardly sleep. I wish I could be somewhere else, as it is hard on my mind to deal with on a daily basis.


Still, I try to find work where I can in this tough economy, and I am on several lists to be called and never have been called to date.


I am too proud to try to get Social Security. I cannot even afford insurance to get my condition fixed. I even have applied for local state insurance to get the problem resolved so I can work again, always with no luck. So I have remained unemployed now for over 10 years and going.


I injured myself, and I am not able to lift more than 10 pounds at a time or stand or sit for long periods of time.


I just want a job so I can try to cover the medical expenses myself since I cannot get help. Surgery costs are around $ 18,000, which sounds pretty reasonable to me.


I am no stranger to hard work. Since 12, I cut grass, shoveled snow, painted houses and fences, swept chimneys, worked in heat treatment plants with dirt and oil, worked in the casting of hot metals, laid brick, made bathroom sinks, swept floors in factories, did drill-press work, sanding work, and worked at fast food places.


I do not lie to get jobs or hid my injury. I do want to work, but I worry now that my disability will mean I won’t be hired by companies because they’re afraid it will come back on them and their company.


I cannot afford private insurance as I do not have steady income. Now I find whatever I can do to reach my goal of paying for my own surgery.


It is a sad world when you live in pain, day in and day out, and you want and need to find work.


Health News Headlines – Yahoo! News


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Germany rejects Swiss tax deal













Germany’s upper house of parliament has rejected a deal with Switzerland to tax German assets held in Swiss bank accounts.












The deal would have allowed Germans with undeclared assets in Switzerland to avoid punishment by making a one-off payment of between 21% and 41% of the value of their assets.


The deal had been negotiated in April and was due to take effect in January.


But it needed to be ratified by both parliaments.


The rejection by the German upper house, the Bundesrat, prolongs the dispute between the two countries over how to deal with the estimated 180-200bn euros (£145-160bn) of German assets hidden in Switzerland.


German Finance Minister Wolfgang Schaeuble had called for support for the deal, saying: “The agreement tries to find a better solution for a situation which is unsatisfactory.”


But Norbert Walter-Borjans, of the main opposition Social Democrats, told the Bundesrat it was a deal which made “honest taxpayers feel like fools”.


Swiss Finance Minister Eveline Widmer-Schlumpf said her government remained “committed to a successful ratification”.


And the Swiss Bankers Association said in a statement: “The German upper house has missed a major opportunity to reach a fair, optimum and sustainable solution for all parties to definitively settle the bilateral tax issues.”


BBC News – Business


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Egypt reformist warns of turmoil from Morsi decree












CAIRO (AP) — Prominent Egyptian democracy advocate Mohammed ElBaradei warned Saturday of increasing turmoil that could potentially lead to the military stepping in unless the Islamist president rescinds his new, near absolute powers, as the country’s long fragmented opposition sought to unite and rally new protests.


Egypt‘s liberal and secular forces — long divided, weakened and uncertain amid the rise of Islamist parties to power — are seeking to rally themselves in response to the decrees issued this week by President Mohammed Morsi. The president granted himself sweeping powers to “protect the revolution” and made himself immune to judicial oversight.












The judiciary, which was the main target of Morsi’s edicts, pushed back Saturday. The country’s highest body of judges, the Supreme Judical Council, called his decrees an “unprecedented assault.” Courts in the Mediterranean city of Alexandria announced a work suspension until the decrees are lifted.


Outside the high court building in Cairo, several hundred demonstrators rallied against Morsi, chanting, “Leave! Leave!” echoing the slogan used against former leader Hosni Mubarak in last year’s uprising that ousted him. Police fired tear gas to disperse a crowd of young men who were shooting flares outside the court.


The edicts issued Wednesday have galvanized anger brewing against Morsi and the Muslim Brotherhood, from which he hails, ever since he took office in June as Egypt’s first freely elected president. Critics accuse the Brotherhood — which has dominated elections the past year — and other Islamists of monopolizing power and doing little to bring real reform or address Egypt’s mounting economic and security woes.


Oppositon groups have called for new nationwide rallies Tuesday — and the Muslim Brotherhood has called for rallies supporting Morsi the same day, setting the stage for new violence.


Morsi supporters counter that the edicts were necessary to prevent the courts, which already dissolved the elected lower house of parliament, from further holding up moves to stability by disbanding the assembly writing the new constitution, as judges were considering doing. Like parliament was, the assembly is dominated by Islamists. Morsi accuses Mubarak loyalists in the judiciary of seeking to thwart the revolution’s goals and barred the judiciary from disbanding the constitutional assembly or parliament’s upper house.


In an interview with a handful of journalists, including The Associated Press, Nobel Peace laureate ElBaradei raised alarm over the impact of Morsi’s rulings, saying he had become “a new pharaoh.”


“There is a good deal of anger, chaos, confusion. Violence is spreading to many places and state authority is starting to erode slowly,” he said. “We hope that we can manage to do a smooth transition without plunging the country into a cycle of violence. But I don’t see this happening without Mr. Morsi rescinding all of this.”


Speaking of Egypt’s powerful military, ElBaradei said, “I am sure they are as worried as everyone else. You cannot exclude that the army will intervene to restore law and order” if the situation gets out of hand.


But anti-Morsi factions are chronically divided, with revolutionary youth activists, new liberal political parties that have struggled to build a public base and figures from the Mubarak era, all of whom distrust each other. The judiciary is also an uncomfortable cause for some to back, since it includes many Mubarak appointees who even Morsi opponents criticize as too tied to the old regime.


Opponents say the edicts gave Morsi near dictatorial powers, neutering the judiciary when he already holds both executive and legislative powers. One of his most controversial edicts gave him the right to take any steps to stop “threats to the revolution,” vague wording that activists say harkens back to Mubarak-era emergency laws.


Tens of thousands of people took to the streets in nationwide protests on Friday, sparking clashes between anti-and pro-Morsi crowds in several cities that left more than 200 people wounded.


On Saturday, new clashed broke out in the southern city of Assiut. Morsi opponents and members of the Muslim Brotherhood swung sticks and threw stones at each other outside the offices of the Brotherhood‘s political party, leaving at least seven injured.


ElBaradei and a six other prominent liberal leaders have announced the formation of a National Salvation Front aimed at rallying all non-Islamist groups together to force Morsi to rescind his edicts.


The National Salvation Front leadership includes several who ran against Morsi in this year’s presidential race — Hamdeen Sabahi, who finished a close third, former foreign minister Amr Moussa and moderate Islamist Abdel-Moneim Aboul-Fotouh. ElBaradei says the group is also pushing for the creation of a new constitutional assembly and a unity government.


ElBaradei said it would be a long process to persuade Morsi that he “cannot get away with murder.”


“There is no middle ground, no dialogue before he rescinds this declaration. There is no room for dialogue until then.”


The grouping seems to represent a newly assertive political foray by ElBaradei, the former chief of the U.N. nuclear watchdog agency. ElBaradei returned to Egypt in the year before Mubarak’s fall, speaking out against his rule, and was influential with many of the youth groups that launched the anti-Mubarak revolution.


But since Mubarak’s fall, he has been criticized by some as too Westernized, elite and Hamlet-ish, reluctant to fully assert himself as an opposition leader.


The Brotherhood‘s Freedom and Justice political party, once headed by Morsi, said Saturday in a statement that the president’s decision protects the revolution against former regime figures who have tried to erode elected institutions and were threatening to dissolve the constitutional assembly.


The Brotherhood warned in another statement that there were forces trying to overthrow the elected president in order to return to power. It said Morsi has a mandate to lead, having defeated one of Mubarak’s former prime ministers this summer in a closely contested election.


Morsi’s edicts also removed Abdel-Meguid Mahmoud, the prosecutor general first appointed by Mubarak, who many Egyptians accused of not prosecuting former regime figures strongly enough.


Speaking to a gathering of judges cheering support for him at the high court building in Cairo, Mahmoud warned of a “vicious campaign” against state institutions. He also said judicial authorities are looking into the legality of the decision to remove him — setting up a Catch-22 of legitimacy, since under Morsi’s decree, the courts cannot overturn any of his decisions.


“I thank you for your support of judicial independence,” he told the judges.


“Morsi will have to reverse his decision to avoid the anger of the people,” said Ahmed Badrawy, a labor ministry employee protesting at the courthouse. “We do not want to have an Iranian system here,” he added, referring to fears that hardcore Islamists may try to turn Egypt into a theocracy.


Several hundred protesters remained in Cairo’s Tahrir Square Saturday, where a number of tents have been erected in a sit-in following nearly a week of clashes with riot police.


____


Brian Rohan contributed to this report from Cairo.


Middle East News Headlines – Yahoo! News


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15 Cheesy Christmas Music Videos on YouTube












1. “Last Christmas” – Wham!



What would a cheesy Christmas music video roundup be without George Michael — and his mullet, covered by a furry, snow-covered hood? If you like this video, just wait until you see the a cappella Norwegian version.












Click here to view this gallery.


[More from Mashable: 10 Adorable Animals Feeding Other Animals [VIDEOS]]


Now that the turkey has been picked apart and you’ve survived another Black Friday, it is now officially acceptable to listen to Christmas music. If you’ve been secretly listening to “Rudolph the Red-Nosed Reindeer” since early November, crank it up!


One of the best — or worst, depending on your perspective — parts about the holidays is how we embrace corniness. The lyrics are cheesy, the wardrobe is tacky and some traditions are silly.


[More from Mashable: Rebecca Black Shows Off Hidden Talent in New Music Video]


To kick off the season, here are the 15 cheesiest holiday music videos we could find on YouTube. Which is your favorite? Share your pick in the comments below.


Image courtesy of Flickr, ronnie44052


This story originally published on Mashable here.


Tech News Headlines – Yahoo! News


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EU budget talks end without deal













The Brussels summit has ended without agreement on the 27-strong union’s next seven-year budget.












A BBC correspondent says another meeting will have to be called to sort out the difficulties but it is unclear how differences will be resolved.


European Council chief Herman Van Rompuy said he was confident a deal would be reached early next year.


Hours of talks failed to bridge big gaps between richer countries and those which rely most on EU funding.


The UK said current EU spending levels must be frozen.


Continue reading the main story

Start Quote



Angela Merkel and I both agreed that it would be better to take some time out”



End Quote Francois Hollande French president


The EU’s divisions are very clear and have become even more stark at a time of economic crisis, says the BBC’s Chris Morris in Brussels.


Mr Van Rompuy had reshuffled the allocations in his original proposed budget during the summit, but he kept in place a spending ceiling of 973bn euros (£783bn; $ 1.2tn).


With the eurozone’s dominant states, Germany and France, unable to agree on the budget, UK Prime Minister David Cameron had warned against “unaffordable spending”.


The failure to decide on a budget came just days after the finance ministers of the 17 eurozone states failed to agree on conditions for releasing a new tranche of bailout money to Greece, raising questions about the union’s decision-making process.


‘No threats’


Mr Van Rompuy’s budget had been unacceptable to a number of other countries, not just Britain, Mr Cameron told reporters.


Continue reading the main story

Analysis


The summit laid bare clear divisions between richer northern countries in the EU, and the poorer south and east. It mirrored the divide that has emerged in the eurozone between northern creditors and southern debtors.


But the uneasy relationship between France and Germany also played a role – when they don’t agree, things tend to move slowly. Germany wanted further cuts in the budget proposal – not as many as Britain and others – but cuts all the same.


France on the other hand, supported by Italy and Spain, was keen to defend the EU’s biggest spending projects.


So striking a deal at a second summit in the New Year won’t be at all easy. But there are two reasons to think that it might succeed.


One is that failure to reach an agreement would mean the EU falling back on more expensive annual budgets.


The other is that many people are keen to avoid a prolonged budget stalemate, which could divert attention from other more important issues – notably the need to take more steps to resolve the crisis in the eurozone.



“Together, we had a very clear message: ‘We are not going to be tough on budgets at home just to come here and sign up to big increases in European spending’,” he said.


“We haven’t got the deal we wanted but we’ve stopped what would have been an unacceptable deal,” he added. “And in European terms I think that goes down as progress.”


German Chancellor Angela Merkel said she was sympathetic towards Mr Cameron’s view – but no more than she was to all countries involved in the discussion.


“The discussions, both the bilateral discussions and the common discussion, have shown us that there is sufficient potential for an agreement,” she added.


French President Francois Hollande said the summit had made “progress”.


“There were no threats, no ultimatums,” he told reporters. “Angela Merkel and I both agreed that it would be better to take some time out because we want there to be an agreement.”


Without naming the UK, he also said it was time the system of budget rebates was reconsidered.


“It is a paradox, because some net contributors [EU countries that pay in more than they get back] get some of the money back even though they are in a situation where they are wealthy enough for them not to get this money back,” he said.


Lithuanian President Dalia Grybauskaite remarked that the atmosphere at the summit had been “surprisingly good because the divergence in opinions was so large that there was nothing to argue about”.


European Commission chief Jose Manuel Barroso said the talks had failed owing to “important differences of opinion – especially in overall size of the budget”.


Revisions


The Commission, which drafts EU laws, had originally called for a budget of 1.025tn euros.




UK Prime Minister David Cameron: “We still believe a deal is do-able”



Its position was supported by the European Parliament and many countries which are net beneficiaries, including Poland, Hungary and Spain.


While most EU members supported some increase in the budget, several, mostly the big net contributors, argued it was unacceptable at a time of austerity.


Germany, the UK, France and Italy are the biggest net contributors to the budget, which amounts to about 1% of the EU’s overall GDP.


Mr Van Rompuy’s revised budget would have softened the blow to the two main areas of spending: development in the EU’s poorer regions, and agriculture.


Instead, there would have been greater cuts to energy, transport, broadband and the EU’s foreign service.


His proposal, put to leaders on Thursday evening, would have made no change to the level of administrative costs – something the UK might have found unacceptable.


Speaking after the summit, Mr Van Rompuy said: “My feeling is that we can go further… It has to be balanced and well prepared, not in the mood of improvisation, because we are touching upon jobs, we are touching upon sensitive issues.”


Failure to agree on the budget by the end of next year would mean rolling over the 2013 budget into 2014 on a month-by-month basis, putting some long-term projects at risk.


Analysts say that could leave the UK in a worse position, because the 2013 budget is bigger than the preceding years of the 2007-2013 multi-year budget.


BBC News – Business


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