MEPs have rejected the EU budget deal agreed by leaders last month.
The European Parliament said it wants more flexibility in the 960-billion-euro spending plan.
Lawmakers argue growth-oriented areas such as innovation, research and education should be a priority.
Parliament president Martin Schulz said: “The figures the Council adopted are the figures of 2005, 8 years ago, and they should be prolonged to 2020. It easy to understand that in 2020 nobody will fullfill the duties of the EU with the amount of 2005”
EU leaders agreed the first-ever real terms cut to the budget, but any deal must be backed the parliament.
While MEPs initially wanted higher spending, they are not challenging the overall headline figure.
Ireland, which holds the bloc’s rotating six-month presidency, will lead negotiations.
Dublin believes a deal will be done within months.
“Now we are at the time where we need decisions, so we have a decisions from the European Council, from February, today we have a decisions from the Parliament in terms of what the Parliament is looking for,” said Ireland’s Minister for European Affairs Lucinda Creighton. “Now we need to secure it. And I think we should do it by May.”
Our correspondent in Strasbourg Efi Koutsokosta said the European Commission will unveil a new draft within the coming weeks.
She said the first step will be to find a way to pay the EU’s outstanding bills for 2013 EU budget before MEPs will give their approval to the next seven-year spending cycle, that lasts until 2020.
- 1Coordinated terror attacks leave dozens dead in Paris
- 2euronews live TV - News | euronews : the latest international news as video on demand
- 31000-year-old Bible found in Turkey
- 4Bomb and several shootings in central Paris – reports of fatalities and injuries
- 5International news | euronews, latest international news
- 6world Weather | euronews: world ten day weather forecast
- 7European Union News | euronews: latest breaking news and headlines about European Union
- 8Police hunting Paris attacks mastermind battle with suspects in heart of Paris
- 9latest sci-tech news : euronews : the latest international news as video on demand
- 10Humans consume more than planet can produce on ‘Earth Overshoot Day’
- 11International breaking news | euronews online world breaking news in video
- 12Special Reports : euronews : the latest international news as video on demand
- 13Business news and finance news | euronews: international economic and finance news
- 14Middle East - News | euronews : the latest international news as video on demand
- 15New temporary spiritual leader of Muslim Brotherhood appointed
- 16Fukushima: Tepco admits contaminated water leak into the Pacific
- 17‘Anonymous’ hackers’ group declares ‘war’ on ISIL
- 18Extras : euronews : the latest international news as video on demand
- 19‘Maxed-out:’ Jordan’s King Abdullah II’s frank warning over Syria crisis
- 20Iraq: deadly car bombs kill more than 60 in Baghdad