BERLIN, June 13 (Xinhuanet) -- Germany and Britain failed to reachan agreement on the European Union's 2007-2013 budget on Monday, but they hope to strike a deal at a EU summit later this week.

    Germany stuck to a compromise reached by the EU and opposed Britain's suggestion for reducing agricultural subsidies in the 25-nation bloc, Chancellor Gerhard Schroeder said after a meeting with British Prime Minister Tony Blair, who was on a visit here todiscuss next month's Group of Eight summit in Scotland.

    Schroeder pointed out that a decision should be made by French President Jacques Chirac on whether to revise the compromise deal as France is the biggest receiver of EU farming subsidies.

    Blair showed few signs of backing down despite pressure from Germany and France to give up Britain's EU rebate as part of a budget deal.

    Britain deserves the rebate as the agricultural subsidies it gets from the EU are too small, said the British leader.

    Under current EU regulations, London gets back 4.6 billion euros (5.7 billion US dollars) a year from the bloc for not reaping so much in the way of EU farming subsidies.

    Blair insisted that any compromise on its rebate should be accompanied by a similar French gesture on the generous subsidies it receives.

    Despite obvious differences, the two leaders agreed that they would strive for "a fair compromise" and reach a deal at the EU summit which is scheduled to start on Thursday in Brussels aimed at renewing public confidence in Europe's future.

    Schroeder called on all EU members to be ready for a compromiseand abandon "national egotism."

    "I still very much hope that a deal will be struck," he said. "We are ready to do our bit and I think there's no place for national egotism of whatever nature." Enditem