European leaders have agreed a budget deal for the rest of the decade after a marathon 25-and-a-half hour negotiation session in Brussels that will lead to the first cut in EU spending in its 56-year history. They agreed to a €34.4 billion (£29 billion) cut over next seven years after 25-hour discussions likened to ‘a bazaar’
The long-term EU budget for 2014-2020 agreed yesterday (8th) is smaller than it was back in 2007-2013. It goes down to 1% from 1.12% of EU GNI (Gross National Income). It is the first net reduction to the EU budget in the Union’s history.
Meanwhile, aid campaigners have expressed concern at the brakes applied to the aid budget. Some aid funds will be frozen under current plans. Agreement of €34 billion cut, the first in EU history, will leave organizations struggling to meet 0.7% aid target..
The cuts would mean poor countries falling far short of achieving the internationally agreed 2015 millennium development goal for halving the number of people in absolute poverty said aid agencies.