“European Union leaders prepared the first-ever cuts in the bloc’s budget, bowing to U.K. Prime Minister David Cameron’s insistence on thrift.
After an all-night bargaining session interspersed with catnaps on couches at EU headquarters in Brussels, the leaders neared agreement on a 2014-2020 spending ceiling of 960 billion euros ($1.3 trillion), down from an original proposal of 1.047 trillion euros and less than the 994 billion euros spent in the current budget cycle.
At the center of the controversy was Cameron, making his first EU summit appearance since announcing plans for a referendum that could result in Britain leaving the 27-nation bloc as early as 2017. Britain’s demands for savings ran into opposition from France, Italy and eastern and southern European economies keen to tap EU subsidies.
“The numbers that were put forward were much too high,” Cameron told reporters before the summit started yesterday afternoon. “They need to come down, and if they don’t come down, there won’t be a deal.”
Leaders, each of whom has a veto, were set to convene at 2:30 p.m. The meeting should be wrapped up today, said a French official who spoke to reporters under ground rules that he not be identified. The breakdown of spending between agriculture, infrastructure and regional development aid is still up for debate. An accord today must also be ratified by the European Parliament….”
If you enjoy the content at iBankCoin, please follow us on Twitter
