EU Budget: EU talks finish in deadlock For the Commission to proclaim ever deeper reductions of expenditure as the route to salvation for Greece and ever more spending by Brussels as the route to salvation for the EU lacks a certain coherence. David Cameron did well to suggest that the Commission and its staff should work longer for less money and retire later. After all it is what they tell the Greeks. He should also explain to his colleagues in the Council that Parliament would not sanction such an increase in euro taxation and that is the end of the matter. 15.15 No one is quite sure, but the general feeling is that the summit will be coming to a close in about an hour. Although, by putting this in print, we may just have jinxed it. 14.55 David Cameron has been accused of "blackmailing" other European Union leaders as talks on the budget approached collapse. Hannes Swoboda, president of the Socialists and Democrats group, said the summit had been "disastrous" and blamed the PM: Regarding the additional cuts, it is unacceptable that the majority of member countries are letting themselves be blackmailed by David Cameron who is permanently threatening to block progress in the EU. The British prime minister, who is considering leading the UK out of the EU, is having more impact on the future of the EU than those who are committed to strengthening the EU and fulfilling their obligations. Hannes Swoboda 14.53 James Kirkup, deputy political editor for the Telegraph, brings us an update from Brussels: Signs that the talks are about to break up. It surely can't have been the lunch: woodland mushrooms with comte fondue followed by filet of young venison then a cappucino minute. Certainly an improvement on last night's "cold cuts," served at around 11pm. 14.33 We reported Cypriot sources earlier as saying that they'd signed a deal with the troika over a bail-out. The IMF/EC/ECB have now issued a statement that basically says, "no, not yet": Discussions are expected to continue from respective headquarters with a view to making further progress toward a potential program. The preliminary results of a bank due-diligence exercise, expected in the next few weeks, will inform discussions between official lenders and Cyprus on financing solutions consistent with debt sustainability. 14.18 A tweet from RTE News's Europe editor, Tony Connelly: 14.03 AFP has an interesting piece about the "travelling circus" that is the European Parliament, which leads a "pricey and nomadic life." Once a month it shifts thousands of lawmakers, their staffs, translators and interpreters, to Strasbourg, 250 miles from Brussels, for a four-day meeting. And then it trucks them all back to Brussels again. This costs European taxpayers €180m a year. Edward McMillan-Scott, a British Liberal Democrat, wrote in a letter to the Brussels daily De Standaard with three other MEPs: If European leaders are serious about efficiency and fighting waste - especially within the European institutions - then the European Parliament's single-seat is a point of departure. European citizens, and more than half of the European Parliament, demand an end to that travelling circus. 13.45 Those at the summit found time to post for a group photo earlier today, but there are suggestions that negotiations over the EU budget for 2014-2020 will now run into Saturday. 13.00 Fitch has cut the credit rating for several Cypriot banks. We'll bring you more details soon. 12.42 German lawmakers have rejected a deal that would have taxed German cash parked in Swiss bank accounts. It would have anonymously taxed Germans directly from their Swiss accounts, with the money handed over to Berlin in one lump sum. Germany's lower house approved it, but the Bundesrat are not so keen. Finance Minister of western North Rhine-Westphalia state Norbert Walter-Borjans said it was a deal which made "honest taxpayers feel like fools." 12.37 Open Europe has published a leaked copy of the draft EU budget, which currently stands at €1,014bn. That's an increase of €4bn, and the extra cash is being spent on higher farm subsidies and structural funds, it says. 12.03 Time for a bit of an update on the European markets as we hit midday. Shares are mixed, but have barely made any move from last night's closing prices. Sadly it looks as though there'll be no positive news from the EU summit to move them this afternoon. The FTSE 100 is up 0.06pc, the CAC is down by 0.06pc and the DAX is off 0.01pc. 11.44 A scathing statement from a former Belgian Prime Minister here, via James Kirkup on Twitter: 11.15 Herman Van Rompuy has tweeted that the summit will start at midday, which means that they've been going for 15 minutes already - if they started on time.