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UK's Cameron: I will veto EU budget if necessary

LONDON, Oct 7 (Reuters) - Prime Minister David Cameron saidon Sunday he would use Britain's veto to scupper European Unionbudget talks if necessary, warning the 27-nation bloc it neededto learn to live within its means.

Cameron suggested the EU should split its budget into two -one for the euro zone and one for the countries outside thesingle currency, including Britain.

Cameron, much to the delight of a powerful anti-EU wing ofhis Conservative Party, used the veto last year to keep Britainout of a European fiscal and economic pact aimed at resolvingthe euro zone debt crisis.

(Reporting by Guy Faulconbriudge and Matt Falloon)

((matt.falloon@thomsonreuters.com;))

Keywords: BRITAIN POLITICS/EUROPE