EU leaders agree 3% budget cut deal in Brussels

 

European Council President Herman van Rompuy: "Lengthy but successful 24 hours"

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EU leaders have reached an agreement on the budget for 2014-20 after lengthy talks in Brussels.

European Council President Herman Van Rompuy announced the deal and said in a statement it was "worth working for".

The new budget ceiling amounts to 960bn euros (£812bn; $1.3tn). It is the first time the EU's multi-annual budget has been reduced.

UK Prime Minister David Cameron, who had been pressing for cuts, hailed it as a "good deal for Britain".

"I think the British public can be proud that we have cut the seven-year credit card limit for the EU for the first time ever," Mr Cameron said.

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

German Chancellor Angela Merkel also welcomed the deal, which represents a 3.3% reduction from the previous seven-year budget.

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This summit demonstrated once again that national politics still dominates. The European interest took second place”

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"From my point of view this agreement is good and it is important because it gives us the ability to act in Europe in the coming years," she said.

"It gives us the ability to plan for important projects and with a view to growth and employment".

The agreement came after all-night talks.

Countries such as France and Italy had sought to protect spending, while others pressed for cuts at a time of national austerity.

The budget must still be approved by the European Parliament.

The four biggest political groups in parliament have said they "cannot accept it as it stands because it is not in the interests of Europe's citizens."

Responsibilities

Mr Van Rompuy said the deal amounted to a cut of roughly 34bn euro in both commitments and payments.

He said EU leaders had met their responsibilities by overcoming sharp differences, and he hoped the European Parliament would meet its responsibilities by passing the budget.

European Commission President Jose Manuel Barroso said he would have preferred a budget closer to the Commission's original proposals.

But he said he recognised that the deal was "the highest possible level of agreement that heads of government could reach with unanimity".

David Cameron hailed it as the first time the EU had cut its budget

While Mr Cameron has claimed a significant overall cut as a victory, the UK's contribution is likely to go up.

The UK's rebate is shrinking from its current annual level of about 3.5bn euros.

The reduced rebate was negotiated by former Prime Minister Tony Blair to help fund the EU's eastward enlargement.

Mr Cameron said he had resisted attempts to further reduce the rebate.

"I fought off attempts to undermine the British rebate and the rebate is safe," he said.

EU budget changes
 

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  • Comment number 695.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    +1

    Comment number 694.

    I see that the admin element has increased. Would, have been politic for them all to take a 10% salary cut like many of the rest of us have had to.
    Also, when are we going to see a full investigation into these various reports on the financial probity of the whole Euro-Circus, that have thus far, been conveniently shelved? This organisation is no better than the worst 'banana republic'.

  • rate this
    +1

    Comment number 693.

    @683. Companion

    to say that you have cut the EU cash, when REALLY UK will be paying MORE, leads me to wonder what sort of education you had.

    --

    The fact that the article clearly explains why the UK contribution will be going up makes me wonder what sort of education you had.

  • rate this
    0

    Comment number 692.

    Unless the Danes get a 1 billion Krona rebate, they will vote no on the EU budget or so their government says. EU officials say they won't get it, their economy does not deserve it.

  • rate this
    0

    Comment number 691.

    It appears that there is bit of a misunderstanding. When we know that the current economical climate resulted from the US credit crunch, with a similar British culture for easy borrowing during the 90s ... and how difficult it can be for a French to get a mortgage when compared to a British. Mr Cameron comes and lecture Europe on cutting spending ... incredibly disturbing. What a lack of lucidity.

  • rate this
    -1

    Comment number 690.

    Goes to show that with positive compromise and everybody recognising the goals that we are all trying to achieve, good things CAN can happen within this Union. First step forward in the long road ahead together !!
    Let's take this on board and ALL pull us in the right direction forward.

  • rate this
    +2

    Comment number 689.

    "Cohesion" Is the largest chunk of the budget. What does this even mean? The EU is a waste of time ... who cares about the rest of Europe? Just cut the EU budget to zero and give the British taxpayer a nice break. Stop spending on other nation's so called "good ideas". End of.

  • rate this
    +1

    Comment number 688.

    OK this is a deal that cuts the EU budget, and yet we still end up paying more to the EU.
    Maybe we can have the mathematical details of this slight of hand just before we vote in the in/out referendum.

  • rate this
    -1

    Comment number 687.

    549 In gold

    "Completely ignores the fact that us European fuedal peasants who pay for it all"

    Seeing that the budget amounts to about 1% of EU countries overall GDP and is dwarfed by the combined national budgets, and it costs each citizen just 1 euro a week, aren't you exaggerating just a little bit?

  • rate this
    +1

    Comment number 686.

    Why is it "austerity" always seems to apply to all of the people in country except for the bankers that caused the financial problems?

  • rate this
    +2

    Comment number 685.

    As a confirmed Eurosceptic I want to see the other 97% cut.

    But I have to say I am surprised and pleased at the result Dave has achieved.

    Well done to the bloke!

  • rate this
    0

    Comment number 684.

    Merkel uses Britian to an extent - we all know that and if you read the reports and analysis of this deal in the news, it's very revealing. Yes I know it's the news but then is the biased news any different from a biased party (Tory or Labour) in Government with an agreement like this?

    Do you mean biased news like the BBC?! Spot on!

  • rate this
    +1

    Comment number 683.

    Well done David Cameron, hero of British interests.

    On the other hand, may I ask... Why are you paying so much into the EU and are implicitly pre-empting the IN / OUT Referendum?

    to say that you have cut the EU cash, when REALLY UK will be paying MORE, leads me to wonder what sort of education you had.

    Tell truth not spin, otherwise you give us hoarse (sic) meat from Europe instead of the beef.

  • rate this
    +2

    Comment number 682.

    680. Chubby1
    Still nonsense however much you protest.
    ////
    I don't protest. I prove you wrong.

  • rate this
    0

    Comment number 681.

    Let's face it - this isn't even cast in iron yet as it has to be agreed by the European Parliament before it gets ratified. So let's keep the corks in Number 10's £290m plus value diplomatic wine cellar (BBC magazine website 8/2/13) shall we? The EU Parliament President has said he is not accepting excessive cuts so this may all be moot anyway.

  • rate this
    +1

    Comment number 680.

    @675.Binky

    You said and I quote ''...most of the big players were in favour of these cuts...''

    Still nonsense however much you protest.

    @678.Rick

    Reducing the EU budget will be popular with many German voters and with a German election soon siding with Cameron is merely convenient but nevertheless Cameron led Germany and others to look at future EU spending.

    And he was right.

  • rate this
    0

    Comment number 679.

    666.Labourtriedtodestroyourfuture

    "Yes, Cameron has done the will of the people and is truly a democrat. Compare the weasle hypocite, Miliband, raised by a Marxist and the heir to a long Labour tradition of Stalinist government."

    -------
    The irony of the number of your post is not lost on me.

  • rate this
    +2

    Comment number 678.

    672.Chubby1 (And Andy because I know he likes to read the news like me).

    Merkel uses Britian to an extent - we all know that and if you read the reports and analysis of this deal in the news, it's very revealing. Yes I know it's the news but then is the biased news any different from a biased party (Tory or Labour) in Government with an agreement like this?

  • rate this
    +1

    Comment number 677.

    @661 Liv

    The BBC have a newspaper?

    Feedback from experience of UK citizens living in Europe and Europeans living in the UK should be invaluable to anyone (especially UK licence-payers) who doesn't wear blinkers to analyse & build their opinions on European issues.

    iPlayer restrictions are designed to protect copyright content according to their broadcast licence.

  • rate this
    +1

    Comment number 676.

    At last Boy Dave has learnt that talking, not shouting at our EU partners gets things done.

 

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