Greek Debt Plan Failure a Bad Sign for Budget Talks

Europe's budget meeting tomorrow may also come to naught, given disagreements among member countries.

European policy makers head into their second confrontation this week saying they’re likely to fall short of agreement on a seven-year budget plan just as they failed to strike a deal on Greek debt.

German Chancellor Angela Merkel told lawmakers in the national parliament in Berlin today that budget talks slated for a summit tomorrow may slide into next year. France rejects cuts to farm subsidies, and the U.K. demands a spending cut.

Debt Sustainability

Finance ministers failed to tackle the dual task of steering an extra 32.6 billion euros to Greece through 2016 while finding a way to tame the resulting increase in Greek debt, already the highest in Europe and deemed “unsustainable” by the International Monetary Fund.

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