EU strikes compromise deal on budget

European Union leaders have struck a compromise deal to break the deadlock over the bloc's budget plans, a British presidency official has said.

    The deal ended a gruelling two-day summit in Brussels

    The deal was reached on Saturday after Britain trimmed its  rebate from Brussels to help increase overall spending in the 25-nation bloc.

    "It's done," the British diplomat said after EU leaders all gave their view on the latest compromise on the 2007-2013 budget after a two-day summit in Brussels.

    The deal came after Britain agreed to cut its rebate by 10.5 billion euros ($12.57 billion) over seven years and proposed a budget for the 2007-2013 period of 862.3 billion euros, or 1.045% of EU output, up from 1.03% in an earlier proposal.
       
    The budget also included a call for the executive European Commission to review all EU revenue and expenditure, including farm spending, and report back in 2008/09.
      
    Accord on the budget plans had been blocked chiefly by Britain's refusal to give more ground on the EU rebate which Margaret Thatcher, a former prime minister, had famously secured in 1984.
      
    The other main sticking point was French resistance to calls for a significant reform of the EU's long-disputed farm subsidy system, of which France is the main beneficiary.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    How different voting systems work around the world

    How different voting systems work around the world

    Nearly two billion voters in 52 countries around the world will head to the polls this year to elect their leaders.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    The great plunder: Nepal's stolen treasures

    The great plunder: Nepal's stolen treasures

    How the art world's hunger for ancient artefacts is destroying a centuries-old culture. A journey across the Himalayas.