EU's Van Rompuy to make new bid to save EU budget summit - Business Times (subscription)

BRUSSELS - European Union president Herman Van Rompuy said Tuesday he will draft a fresh proposal on the bloc's contested trillion-euro budget in hopes of saving an extraordinary summit this week from collapse.

In an invitation to the EU's 27 leaders, Van Rompuy pledged "a revised version" of controversial proposed cuts to the EU budget for 2014-2020 to be considered when leaders begin the two-day talks Thursday evening.

Austerity-driven nations led by British Prime Minister David Cameron are demanding huge cuts to EU spending to match domestic belt-tightening, but face opposition from poorer nations to the east and south who benefit from the Brussels budget.

Run-up talks to Thursday's budget summit have exposed stark divisions between EU nations that threaten more trauma for the bloc after three years of economic crisis.