European leaders 'deadlocked' on EU budget

Leaders in negotiations at the European Union summit in Brussels have remained deadlocked at talks over the EU's long-term budget. At stake is the union's budget framework for the years 2007 - 2013. Outstanding issues that have come to the forefront include the future of the United Kingdom's budget rebate measured against farm subsidies. Diplomats have been saying that the prospect of a deal looks uncertain. Leaders have yet to decide whether it is worth continuing talks on Friday; some - like Sweden's prime minister - have recommended it would be better if a final decision on the budget were put off until 2006.