European policy makers head into their second confrontation thisweek saying they're likely to fall short of agreement on aseven-year budget plan just as they failed to strike a deal onGreek debt.

German Chancellor Angela Merkel told lawmakers in the nationalparliament in Berlin today that budget talks slated for a summittomorrow may slide into next year. France rejects cuts to farmsubsidies, and the U.K. demands a spending cut.

“There are deep divisions between the member states,” IrishPrime Minister Enda Kenny said in the Dublin parliament today.“There are fears that it will not be possible to get a deal.”

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