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EU leaders agree to adopt first ever austerity budget

Expecting to help millions who are struggling through government cutbacks and recession, European Union leaders reached an agreement on the first ever cut in their common budget.



Zeebiz Bureau

Brussels/New Delhi: Expecting to help millions who are struggling through government cutbacks and recession, European Union leaders reached an agreement on the first ever cut in their common budget.

This resulted after a 24 hour long meeting on Friday.

The expected deal met the demands of northern European countries such as Britain and the Netherlands that wanted belt-tightening, while maintaining spending on farm subsidies and infrastructure to satisfy the likes of France and Poland.

It will be the first net reduction to the EU's long-term budget in the bloc's history, representing a decrease of around 3 percent on the last budget and shaving spending in areas from infrastructure to administration and scientific research.

Last-minute haggling over precisely how to divide up the 960 billion euros ($1.3 trillion) to be spent between 2014 and 2020 drew out the process, before Herman Van Rompuy, the president of the European Council and chairman of the summit, announced that a definitive deal had been struck among the leaders.

"Deal done!" he said in a message posted on Twitter, saying that the agreement had secured a budget until the end of the decade. "Worth waiting for," the message added.

With Agency Inputs

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