European Union foreign ministers are meeting in Brussels in a special session to try to break a deadlock over the EU's 2007-2013 budget.
British Foreign Secretary Jack Straw has conceded that chances of resolving the row were "narrow", as London's bid to find a solution was criticisied at talks in Brussels.
The British EU Presidency has proposed cutting financial aid to poorer EU countries from eastern Europe. European Commission chief Jose Manuel Barroso has called for new proposals, saying the current ones were "unacceptable".
EU leaders failed in June to agree on funding, split over Britain's refusal to give ground on its rebate and French resistance to reform of generous farm subsidies, of which Paris is the main recipient, DW-World reports.