Leaders of European Union who met in Brussels today have reached to an agreement on the EU budget for 2014-20. The talks between 27 heads of state and government were held for more then 24 hours.
The new budget will see a cut of 3% and this is the first time the EU's multi-annual budget has been reduced. The new budget amounts to 960bn euros (£812bn; $1.3tn).
European Council President Herman Van Rompuy confirmed the deal via tweeter saying, "Deal done!"
David Cameron, Prime Minister of United Kingdom said, "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".
Cameron has had been pressing for cuts as he says this will relief British tax payers.
Angela Merkel, German Chancellor said, 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".
France and Italy wanted to protect the budget and spending while other member countries were pressing for cuts. The other members countries have said that how can EU go on with a high budget when nations are cutting their budget back home.
However, this is only the first phase. Now the budget has to be approved by the European Parliament. Heads of the four largest groups in parliament will vote in July. They have said they could not accept it in its current form as it would not help boost the struggling EU economy.
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