EU member states wrangle over all-important budget: Is a deal this year feasible?

EU leaders put on a brave face at the end of the talks by saying that 'the way forward is clearer', but capitals appear deadlocked on what that path is.

The main dividing line is between the so-called 'frugal countries', who want deep cuts to the proposed budget, and the 'friends of cohesion', who say that cuts are not the answer.