Azernews.Az

European Union leaders are expected to resume talks Friday on the bloc's seven-year budget, Radio Liberty reported.

A brief initial round of summit talks in Brussels, Belgium, ended early Friday without any reported breakthroughs.

German Chancellor Angela Merkel told reporters afterward she doubted that an agreement could be reached this weekend, and that further negotiations - perhaps extending into next year - could be required.

French President Francois Hollande said he expected that tough negotiations would be necessary to reach a deal on the EU's projected 1-trillion-euro budget for 2014-2020.

Amid sluggish EU economic growth and recession in some countries, Britain, Germany and some other top contributors to the EU's budget are seeking to limit expenditures.

France, meanwhile, has called for continued subsidies for farming and development programs for poorer EU nations.

The bloc's poorer members, such as Poland and other ex-communist states, want the 2014-2020 budget maintained at current levels or even raised. These countries benefit from the EU's funds for infrastructure improvement, known as cohesion spending.

Cohesion spending and agriculture are the biggest items in the draft budget, accounting for 32 percent and 37.5 percent of spending respectively.

The summit has brought to the fore the debate between countries advocating a pro-austerity strategy for helping Europe emerge from its economic doldrums, and those supporting pro-spending policies.

Tensions have been raised over British Prime Minister David Cameron's suggestion that Britain could veto any increase in spending. Britain wants spending frozen at 2011 levels.

Each of the 27 member states has veto power over the budget.

EU president Herman Van Rompuy has proposed cutting the European Commission's planned 1.091 trillion euro ($1.4 trillion) budget by about 80 billion euros in a bid to secure an agreement among the competing interests.

French President Hollande said he was not satisfied with current proposals, noting they call for cuts in agricultural aid, from which France benefits. But he said a compromise would probably be necessary.

"I am in favor of a compromise," Hollande said. "It's what is in the interest of Europe and I am for what is in France's interests as well."

Britain, the Netherlands, Sweden and Germany are among the countries that contribute more funds than they receive from the EU's budget. They argue that austerity is the best strategy to overcome Europe's debt woes.

The European Commission, the EU's executive arm, and its allies among the EU governments support a spending strategy, saying this will trigger cross-border initiatives that will create economic growth and jobs.