Cameron: "We still believe a deal is do-able"

UK Prime Minister David Cameron has said he believes a deal can still be reached, after the EU budget summit ended without agreement.

Mr Cameron said Britain, Germany, Sweden, the Netherlands, Finland, and Denmark were net contributors to the EU and were not going to be tough on budgets at home just to come to Brussels and sign up to big increases in European spending.

He said Brussels seems to live in a parallel universe and EU institutions must adjust to the real world.

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