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EU-BUDGET/
RTR3DD8T 
February 05, 2013 
PJ McHugh, 74, drinks a cup of tea in his farmhouse in Laconnell on the west coast of County Donegal... 
Maghera, Ireland 
McHugh drinks a cup of tea in his farmhouse in Laconnell on the west coast of County Donegal 
PJ McHugh, 74, drinks a cup of tea in his farmhouse in Laconnell on the west coast of County Donegal February 1, 2013. European Union states will meet for the second time on February 7-8 to try and negotiate the nearly 1 trillion euro EU budget for 2014-2020. Previous talks collapsed in November and deep divisions remain over whether and how deeply the budget should be cut to reflect the euro debt crisis and harsh austerity measures being taken to address it. Arguments over farm subsidies and rebates are yet to be resolved as the EU contemplates its first real terms decline in spending. But officials are more confident that a deal will be struck this time. France is the biggest beneficiary of farm subsidies, which accounts for about 40 percent of the total budget. It has been at the heart of attempts to maintain contributions along with newer EU members to the east and countries struggling with crippling debts. However, countries such as Germany and the United Kingdom, which pay far more into the budget than they get back, are pushing for a reduction in an attempt to help balance their national books. Picture taken February 1, 2013. REUTERS/Cathal McNaughton (IRELAND - Tags: AGRICULTURE POLITICS BUSINESS SOCIETY)

ATTENTION EDITORS: PICTURE 16 OF 20 FOR PACKAGE 'EU BUDGET CARVE-UP'.
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