Ferenc Gyurcsany, the Hungarian prime minister, yesterday intervened in the dispute over the European Union budget, warning that if wealthy west European states were not generous to the poorer east, they faced the prospect of "the most serious possible conflicts between the different parts of Europe".

In an interview with the Financial Times, Mr Gyurcsany said the UK should rethink its proposals to cut aid for eastern Europe as a solution to the dispute over the EU's 2007-13 budget. Mr Gyurcsany's comments came after most of the east European states that joined the EU last year categorically rejected budget plans put forward by the UK, holder of the union's six-month rotating presidency.