EU Leaders Agree Historic Budget Deal
European Union leaders have made history by agreeing the first ever cut in the organisation's budget.
The breakthrough was declared in a tweet from the president of the European Council, Herman Van Rompuy, saying: "Deal done! #euco has agreed on #MFF (Multi-annual Financial Framework) for the rest of the decade. Worth waiting for."
The deal, the first decrease in the bloc's 56-year history, aims at placating millions of European citizens struggling with austerity measures and recession.
Reports said the agreement fixes a spending limit of 960bn euros (£820bn) for projects the EU can promise to fund between 2014 and 2020.
That is far less than the 1.03tn euros (£871bn) that the EU Commission originally proposed, reflecting Europe's tough economic times.
But not all those projects will be completed, as some are cancelled or postponed, meaning the maximum amount the EU will ever pay out is 908.4bn euros (£774bn) - a significant decrease on the actual spending cap.
"I think the British public can be proud that we have cut the seven-year credit card limit for the European Union for the first time ever," Prime Minister David Cameron told an end-of-summit press conference.
He said, however, the UK's net contributions would rise - but by less than had been feared. He said the budget would be "more modern and effective" and called it a "good deal" for Britain.
"(It) shows that working with allies it is possible to take real steps towards reform in the European Union," Mr Cameron said.
However, the EU Parliament must still approve the deal - and some legislators have suggested that the cuts are unacceptable. Securing any parliamentary approval is likely to take months.
Sky's Europe Correspondent Robert Nisbet said Mr Cameron appears to have made good on his promise to achieve at least real-terms freeze.
Mr Cameron, supported by other northern European leaders, argued that the EU could not increase spending at a time of austerity, but differences remained on where to make cuts.
The deal was reached after two days of intense talks in Brussels. French President Francois Hollande called it a "good compromise".
The reductions agreed on Friday fall mainly on spending for cross-border transport, energy and telecommunications projects.
Spending on agriculture was spared further cuts, and there was an increase of about 1.5bn euros on rural development over the seven years, satisfying France, Italy and Spain.
what do you think?
I bet it still ends up costing us even more money. Roll on the referendum.
Agreed. We already paid too much and it is increasing. I will be issuing a formal request for the Sargeant at arms to arrest the PM.
A referendum under Cameron will never happen unless it's a guaranteed "yes" to stay in.
adam I read it that and I quote "He said, however, that his country's net contributions would rise - but by less than had been feared. He called it a "good deal" for Britain".
I agree Adam, but even if a huge majority say we want to leave, the EUSSR will still insist that we continue voting until we give them the answer they want. They need us far more than we need them.
Get us out of here pdq.
So there's been a cut.............although our net contributions (tax) we pay to the EU will increase. I smell we're not being told the whole truth - why am I not surprised.
Politicians were involved ?
Well! Two and a half cheers and a Bronx Cheer to them!
so there will be a cut in eu spending, but our contributions will rise! and this is a good deal for britain! cameron is a joke.
There's always a catch, isn't there??
The only chance this Country has for a referendum is a UKIP government.If you think Camaroon and his thieving MPs will listen to 90% of the population of the UK all of who want out of this monster called the EU then you go talk to the fairy at the bottom of your garden. A smaller budget for the next 7 years but the UK contributions go from 53 million pounds per day to 54.5 million pound per day (YES THAT IS PER DAY) how does that work.
good by cammoron hello ukip. this man is a joke
When will individual leaders stand up to "the elite" and refuse to subsidise their life style and make them justify the biiions of euros they permit to be wasted in corrupt and unfullfilled projects. As well as the restrictive legislation that prohibits growth in the western European industrial nations. All this reeks of an untouchable elite who does not have to answer to anyone. Roll on 2017. ONE HUNDRED YEARS FROM THE RUSSIAN REVOLUTION LETS HAVE ANOTHER ONE BY THE OPPRESSED PEOPLE OF EUROPE. Where are the Stirlings, the Goldsmiths and Jellicoes of yesteryear.
Only the Tories can say that a rise can be a cut smoke and mirrors
Tony Blair was also good at it.
Wrong there Alf. Gordon Brown was very good at it. Remember the 2p cut in income tax by increasing the tax bill of the poorest by taking away the 10% rate. It increased my tax bill by £250
How dare you say anything against the great gordon dave ? He is the nearest thing that the left have to a success. Says it all really ay ?
All the puffing and blowing photo opportunities Cameron still shoved to the back with the minor countries. We still end up paying more, how can we influence the rest of the E.U when we are shouting we want our ball back or we are not playing and want to get out.There are E.U. countries who want the same as us ,but Cameron makes us look like UKIP little Englander`s
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it wont stop us being the dumping ground of the world
It's all spin. The E.U asked for an inflated figure they knew they would never get then it was 'negotiated' downwards.
Ben. Tend to agree. It is the first reduction in 56 YEARS and we are supposed to celebrate as if it is some wonderful achievement.
Spending on agriculture was spared further cuts. That is exactly where cuts need to be made as it accounts for almost a third of the EU budget. No wonder Hollande is pleased he has protected French peasant farmers at the expense of the rest of us
Well said Dave. We all know who really calls the shots over there. The arrogant, spoiled, duplicious french. I can't even be bothered to give that bunch a capital letter at the begining of their name.
Careful tb or they will send you a horsemeat sandwich labelled beef
Mr I want cameron went over to call the shots didn't he. He realy put the fear of god into those EU folk,and came back with extra burden on the taxpayer,what a useless cre tin, the other members must be laughing there socks off. I wouldn't mind betting the reduction achieved will be deducted from our rebate. Double whammy.
good by cammoron hello ukip. no good moaning about it vote ukip and get the three main parties out.
Totally agree Lance.
Which other members of this elite club can't do simple maths and went home with an increase to their contributions,when a reduction in total budget Should mean a reduction in contributions. This man cameron is a liability to the UK,his head should be at traitors gate. Tories vote UKIP and get this idiot out.