The budget of 45 million Euros remains valid for 2010

The FIA states that its plans for a budget cap of 40 million Pounds (approximately 45 million Euros) will indeed come into effect without changes in 2010. The latest negotiations between the Board of Directors and the Formula One Teams Association (FOTA) to try to find a compromise ended without any agreement.

Economic and financial experts from the FIA and FOTA met yesterday, Monday, in London to try to reach a new regulation for next year, which would be acceptable and accepted by both parties.

There was little hope that new rules would be put in place after a preliminary agreement was reached between FIA President Max Mosley and several FOTA representatives during a meeting last week.

However, the FIA was disappointed with this meeting as the FOTA members stated that no dialogue was possible on these new rules. Additionally, they believe that their proposals were dismissed as having no impact.

According to a statement published by the FIA on Tuesday: « As agreed at the meeting of June 11, the FIA’s financial experts met yesterday with the financial experts of the FOTA. »

Unfortunately, the representatives of FOTA announced that they were not able to discuss the financial regulations of 2010.

« Consequently, the meeting could not achieve its objective of comparing the FIA’s rules with those of the FOTA with the aim of finding a common position. »

« In the absence of a real dialogue, the financial proposals of the FOTA were examined, but these do not in any way limit a team’s expenses. Another financial arms race would then be inevitable. »

« The FIA’s financial regulations therefore remain valid. »

It’s a real frustration for the FIA to be unable to find a common solution. Yesterday, it accused the FOTA of deliberately wanting to sabotage an offer.

Current Formula 1 teams have until Friday to lift the conditions attached to their entry, or they risk being removed from the grid in 2010.

With this latest development, it is increasingly unlikely that the issue will be resolved before the deadline.