Germany denies rift with Britain on EU budget

[October 22, 2012]  BERLIN (AP) -- The German government has denied reports of a rift with Britain over plans to increase the budget of the European Union.

Chancellor Angela Merkel's spokesman says a Financial Times report that Germany is threatening to cancel an EU summit in November unless Britain backs off on its demands for a spending freeze.

Steffen Seibert said Monday that Germany agrees with Britain on the need to limit any increase in the bloc's 2014-2020 budget plan at a time when many EU member states have imposed strict austerity measures.

He says Germany advocates a "very moderate" increase in the seven-year budget.

Seibert says an agreement would send "a very strong sign that Europe...can get things done."

[Associated Press]

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