The lack of consensus brings talks on the financing of the union in 2011 to an impasse — one that could put into question the financing of the diplomatic service that the bloc is setting up, as well as other spending projects.
The deadline for an agreement is next week, and negotiators are planning a last-ditch meeting Monday.
With many European governments forced to make cuts at home, a number of nations insisted that any rise in the bloc’s budget should be capped at 2.91 percent, rather than the 6 percent originally requested by the European Parliament.
Talks broke down Thursday when the Parliament agreed to accept the 2.91 percent increase, but only in exchange for having a say over future changes to the system, like financing the bloc through a new tax.
That proposal was rejected by national governments, as was a proposal from legislators to agree on an additional contingency fund.
The dispute has become a trial of strength between the governments and legislators, who won more powers over the E.U. budget under the bloc’s new Lisbon Treaty.
Britain, which is making vast reductions in public spending, has led resistance to big increases in the E.U. budget. At a summit meeting last month, Prime Minister David Cameron won the support of 12 countries in seeking to stop any increase above 2.91 percent.
The 6 percent increase sought by the Parliament would raise the level of spending for next year to about €130 billion, or nearly $180 billion, most of which would be directed toward farm subsidies and aid for Europe’s poorer regions.
Justine Greening, a British Treasury minister, said Thursday there would be no compromise on the 2.91 percent figure.
“At a time when many national governments, including our own, are taking tough steps to clamp down on dangerous deficits,” she said, “we thought it was unacceptable to talk about big increases in the European budget.”
If there is no breakthrough, the current level of spending will carry over into next year. But while that would mean no increase — something welcome to budgetary hawks — it could also create logistical and planning complications.
Janusz Lewandowski, the European commissioner responsible for the budget, said that failure to agree on a budget was “a really bad message to the European public,” adding that a deadlock could mean that financing for the new diplomatic service could be subject to legal dispute.
Alain Lamassoure, a senior legislator, accused some countries of intransigence.
“To conclude a negotiation,” he said “you have to start the negotiation.”
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