EU budget may hit push for subsidies

EUROPEAN UNION spending in 2006 would be near a limit demanded by richer nations under a draft budget that may undermine a push by poorer countries for more subsidies in the years ahead.

The European Commission has proposed a budget for next year of €112.6 billion ($146 billion), or 1.02% of the bloc’s gross domestic product. Six nations, including Germany, France and Britain, are calling for spending to be frozen at 1% from 2007 through 2013.