There is no reason to over-dramatize the failure of the European Council to reach a compromise over the European Union's future budget, said Italian Premier Silvio Berlusconi on Saturday.

"There were no winners and no losers. We still have a year to find a solution and I'm sure the European Union will continue to work," Berlusconi said Saturday after the failure of the EU summit, Italian News Agency ANSA reported.

"Europe will continue to exist. We can start against from where we arrived," he added.

According to Italian Foreign Minister Gianfranco Fini, the European Union's crisis is not a financial but political one.

Fini agreed with Berlusconi that the failure to reach a compromise on the 2007-2013 EU budget "will not stop the European Union from functioning. However, there is a risk that the European Union will lose its attraction.

The EU summit failed, Fini explained, because "many governments are not ready to sacrifice their national interests in the name of European integration. This is not a matter of egotism as much as a lack of confidence."

This was why, he added, Britain refused to give up its rebate, France refused to reduce farm subsidies and Italy insisted on funds for underdeveloped economic areas.

According to Fini, Europe needs to agree on a strategic outlook before it tackles the EU budget.

Source: Xinhua