EU agrees first ever budget cut

European Union has agreed a seven-year budget following two days of intense negotiations.

It is the first reduction in the credit limit for Brussels spending in the history of the EU.

After hours of tortuous negotiations over the past two days, the latest EU summit broke up with an agreement that spending for 2014/2020 would be €908bn.

British Prime Minister David Cameron revealed that spending for 2014-2020 would be €24bn lower than during the last seven-year period.

Summit chairman Herman Van Rompuy earlier took to Twitter to declare a budget deal done.

"Deal done! European Council has agreed on MFF (Multi-annual Financial Framework) for the rest of the decade. Worth waiting for," he tweeted.

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