A round-up of public finance news stories from Europe you might have missed this week (June 17–21).

MEPs reject £820bn EU budget deal

In a setback to the European Union, the major parties in its Parliament have rejected a tentative deal on a seven-year €960bn (£820bn) budget that is supposed to kick in next year. (Irish Independent)

Greek government may fall over austerity           

Some of the parties that form the coalition that rules Greece have pulled out of the alliance. It appears another European government could fall over the question of austerity, or at the very least be neutered. The war over whether austerity measures have gone too far in Greece, Spain and, to a lesser extent, France, have made governing alliances unstable and leaders unpopular. (247wallst.com, US)

Ireland's largest labour union votes for revised pay plan

Ireland's largest labour union has voted for revised government plans to make public sector pay cuts and payroll savings, providing a boost for the coalition's austerity programme. The Services Industrial Professional and Technical Union voted to back the revised proposals by 76% to 24%. (Wall Street Journal)

Finland considers more austerity

Finland is committed to stopping public debt rising by its 2015 target despite deteriorating growth and may announce new austerity measures next year, Finance Minister Jutta Urpilainen said this week. (Gulfnews.com)

Hungary will raise taxes further to meet budget target, minister reveals

The Hungarian government will raise its financial transaction levy and telecommunications tax to keep its budget deficit target permanently below the level required by the European Union, the country's economy minister said this week. Hungary has been under review since it joined the EU in 2004 for having significantly higher budget deficits than the required 3% of gross domestic product. (Wall Street Journal)