EU: The president of the European Parliament, Josep Borrell, has warned EU leaders that the parliament could still veto the proposed EU budget deal agreed last December.
Mr Borrell said negotiations on the budget with the parliament had not advanced much ahead of a final meeting between the parliament, European Commission and council.
"Major differences remain regarding flexibility and resources needed for certain expenditure policies of particular European importance," said Mr Borrell, who highlighted a proposed €20 billion cut in the EU research and development budget originally sought by the commission.
He urged EU leaders to avoid generating further disillusionment with the European project by agreeing to an amended budget deal that provided more cash for the EU.
"Let us not create new expectations which we will not be able to fulfil. Let us reach an agreement which will enable us to fulfil those expectations which we have already created," said Mr Borell.
He also told EU leaders that the parliament still had to endorse the proposed mid-term review of the financial perspectives, a key part of the deal that was sought by Britain.
The leaders agreed a budget worth €862 billion last December for 2007-2013 but member states still need to reach agreement with MEPs before it can take effect.
They are expected to discuss the possibility of providing extra cash to meet the concerns of the parliament on the fringes of the summit. But current EU president Austria and Britain are both opposing any significant increase in available funding.
The parliament wants an extra €12 billion from member states for the budget.
Mr Borrell also strongly criticised member states' degree of commitment to the Lisbon reform programme, which seeks to make Europe the most competitive region by 2010.