Crisis looms as MEPs row back on EU cuts

A payment crisis is looming in the EU as furious members of the European Parliament reinstate spending on aid, job investment, and youth cuts made by member states for next year’s budget.

The leaders of the member states agreed in June to a €135bn budget for 2014-20, hard fought for by Ireland, and committed themselves to spending it on boosting the EU’s economy.

But the budget for next year — the first in the six-year cycle — had already been cut by €1bn by the Council of Europe, which represents the member states. The representatives of the countries last month decided where the axe would fall.