Denmark is still determined for progress in setting the budget framework to 2020 - but the EU remains divided.

Interview: Difficult negotiations for the EU budget

Once every seven years, the EU sets  a framework for the next budgetary period.

and with an economic crisis  it's never been harder.

That's why MEPs, Commissioners  and government representatives

debated the possibility  of the EU funding itself in some way,

'own resources' funding, as it's called.

But with elections soon  in France and Germany,

No, I don't believe so. I believe  we have an obligation to move forward

at flying speed to make sure that progress  is being made on the MFF negotiations.

That is also the aim  of the Danish Presidency

working on it in the General Affairs  Council meetings and other meetings

to make sure that we get as far as  possible during the Danish Presidency

so that a deal hopefully can be reached  in the second half of this year.

We've actually got three crises  running concurrently.

We've had a crisis in the banking  and financial services sector,

we've got a crisis in the sovereign debt  sector, and we've had a recession.

So put those three together and you  can see it's been enormously distracting.

Actually what we need to do now  is focus on the next seven years.

It's different for the EU. National finance  ministers can go into the red or borrow.

I believe it's very important that the EU  will not end up in the same situation

as some Member States have found  themselves in with a lot of debt.

We can't raise money  on the money markets, we can't borrow it,

we can't raise taxes,  nor can we go into the red.

We cannot run a deficit  so we have to get it right.

through a financial transaction tax, VAT,  or an energy or air transport tax?

We're not in favour  of new taxation schemes in the EU.

That is for the national states,  for the Member States to decide.

But if we can make the own resources  of the EU less complicated

than is the case today,  we will have an open mind.

But taxation belongs  to the Member States.

The suggestions we've seen so far  actually distort markets.

We think that, for example,  the financial transaction tax

would unfairly discriminate  against the City of London.

Air transport tax would damage  the competitiveness of European industries

because unless the rest  of the world agrees to it

you're just loading extra costs  on European companies,

which at a time like this you can't afford.

How realistic is it to plan  for eight years into the future?

No one predicted the economic crisis  or the Arab Spring, for example.

It's extremely important that we take aim

at what will be  the challenges of the future.

Therefore, the Danish Presidency  is working very hard

to allocate resources to innovation,  to research, to education,

instead of just going on on the same lines  we have gone on for many years.

Will this be complicated? Yes.  Is it necessary? Absolutely.

There is what I term a silo mentality  within our budget system at present.

Money is put in that pot, it belongs there,  and it doesn't move anywhere else.

In terms of discipline, that's a positive.

But in terms of flexibility and making best  use of scarce resource, it's not good.

Denmark will make progress  during its presidency,

but from July on other countries take over

and one of them will set the final amount  of money involved at the 11th hour.

I have full confidence  in the later presidencies

that they will work on this in a very  energetic and professional manner.

It is the clear aim  of the Danish Presidency

to prepare a negotiating box for  the European Council meeting in June

by the end of this year  during the Cypriot Presidency.

That will give us ample time  to have the budget in place

If past performance is anything to go by,

I can almost guarantee  that it will be an 11th hour job,

that we will be at the stroke of midnight

still agreeing the finer details  of the budget.

the presidency of the European Union  will be under the Greeks.