Spanish, Greek and Irish flags fly behind a statue symbolising European unity outside the European Parliament in Brussels
Media playback is unsupported on your device

EU budget talks: Cameron says Britain will not lose rebate

21 November 2012 Last updated at 23:06 GMT

Britain will not give away any of its rebate during the EU budget negotiations, the Prime Minister has said.

David Cameron will attempt to agree a new seven-year budget deal in Brussels on Thursday.

The president of the European Council has raised the prospect of a reduction in Britain's rebate as part of a possible agreement, but as Gavin Hewitt explains there are issues over the size and nature of the new budget deal.