UK demands 'better deal' in budget row with EU

"The demand that Britain pays 1.7 billion pounds (2 billion euros; $2.5 billion) on the 1st of December is unacceptable," British Chancellor George Osborne told reporters ahead of a key meeting of the EU's finance ministers on Friday.

Osborne's remarks reflect the general attitude of British Prime Minister David Cameron's government over an unexpectedly large bill from Brussels in late October. As part of its yearly recalculation, which it conducts for each of its 28 member states, EU officials found that London should contribute more to the bloc's budget based on its economy's better-than-expected performance.

While the UK was not the only nation asked to pay more - the Netherlands owes 642 million euros - it has expressed disbelief at both the unprecedented sum and the short deadline.

"I will make sure we get a better deal for Britain," Osborne said on Friday.

Moreover, Cameron faces pressure from an ever-more influential euroskeptic party, which stands to gain more ground in an upcoming local election slated for November 20.

Failure of repayment would cost Britian more money, forcing the EU to raise the debt on a monthly base and to add an interest-rate penalty to the outstanding bill as well.

Ministers mull delayed payments

The EU has insisted that the recalculation for the UK follows rules which have been approved by all EU member states, including Britain. However, its finance ministers have expressed support for allowing London to gradually repay the large sum of money, which would help finance various programs across the EU, including education, research and other subsidies.

German Finance Minister Wolfgang Schäuble said the row would likely "calm down" and depicted Cameron's emotional reaction as politically driven.

"I think we can find solutions that will allow everyone to pay what they have to pay, but under respectful conditions," his French counterpart, Michel Sapin, also said on Thursday, in Brussels.

However, allowing one country to delay payment would require a change to legislation. According to a European source speaking to the AFP news agency, the EU finance ministers were expected to discuss "exceptional circumstances" under which such a deal could be reached.

kms/tj (AFP, dpa)