EXTRA: EU parliament president fears "worst of all worlds" budget

Brussels (dpa) - European Parliament President Martin Schulz warned Thursday that the compromise shaping up in 2014-20 EU budget negotiations represented the "worst of all worlds," in a last-ditch attempt to convince member states to steer clear of swingeing cuts.

He told EU leaders that it was "misguided" to leave agriculture and cohesion spending untouched, while cutting funding for "forward-looking policies" in areas such as research and education, according to a transcript of his speech.

"I cannot, will not and, indeed, may not accept what amount to deficit budgets," Schulz said, repeating his threat that EU lawmakers would not hesitate to reject an eventual deal.

But diplomats said the negotiations between member states were proving "very very difficult" and could fail to produce a deal. French Minister for European Affairs Bernard Cazeneuve said however that he was not worried, as "EU agreements are always reached in the final sprint." dpa hm grj