The fate of the EU budget for 2007-2013 remained unresolved yesterday as talks between the European parliament and Council of Ministers, representing member states, failed to reach agreement, Chris Smyth writes from Brussels.

Karl-Heinz Grasser, finance minister of Austria, which holds the rotating council presidency, dismissed as "wishful thinking" demands from MEPs for an extra €12bn ($10bn, £6.9bn) on top of the €862bn agreed last year by national governments. Member states would offer at most an extra €1.5bn, he suggested.