EU leaders reach budget cut deal in Brussels

  • European Union reached an agreement on the budget for 2014-20 in Brussels on Friday.

    The new budget ceiling amounts to 960 billion euros ($1.3 trillion).

    It marks the first time the EU's multi-annual budget has been reduced.

    British Prime Minister David Cameron, who had been pushing for the cuts, welcomed the move as a "good deal for Britain".

    German Chancellor Angela Merkel also hailed the deal, which is equal to a 3.3 percent reduction from the previous seven-year budget.

    Meanwhile, French President Francois Hollande, who was against big spending cuts, said it was a "good compromise".

    The deal set out to strike a balance between the demands of northern European countries, such as Britain and the Netherlands that were seeking cuts, and countries in the south and east that wanted sustained spending on farming subsidies and much-needed infrastructure.

    The budget is yet to be approved by the European Parliament.

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