European Council President Herman Van Rompuy chosen not to put forward a new budget compromise to EU leaders on Thursday, due to sharp divisions between key nations.
This could result in there being no new proposal on the first night of a two day summit.
Some leaders like British Prime Minister David Cameron want the budget reduced further, he says
the EU should not be immune from the pressures national governments are facing.
But French President Francois Holland has called his demands ‘unreasonable’ and said he would question Britain’s contested budget rebate.
German chancellor, Angela Merkel, has positioned herself as the mediator between two sides.
If a budget agreement is not reached by the end of this year the 2013 budget would role over on a month-by-month basis, putting some long-term projects at risk.