The European Commission says it is still possible to reach a budget deal at next week's European Union summit, even though member states have heavily criticized a British proposal.
Commission spokesman Johannes Laitenberger says more work is needed to reach agreement on the budget issue. He says Britain may have to accept a smaller increase in its annual rebate to win approval of the budget.
The British government, which holds the rotating EU presidency, submitted a proposal Monday that cuts $28 billion from the six-year EU budget, beginning in 2007. Most of the cuts would come from aid to the bloc's new and poorer member states. Britain also offered to give back $9 billion of its annual EU rebate to assist those countries.
But several European officials say the plan mainly looks after Britain's own interests and needs serious revisions.