EU leaders agree to $1.28 trillion 7-year budget

BRUSSELS- European Union leaders agreed Friday to a drastically reduced 7-year budget worth €959 billion ($1.28 trillion) — the first cut in spending in the 27-country group’s history.

European Council President Herman Van Rompuy said Friday the agreement had been reached after two days of nearly round-the-clock negotiations.

“We simply could not ignore the extremely difficult economic realities across Europe,” Van Rompuy told reporters. “It had to be a leaner budget.”

He said it would amount to 1 percent of the European Union’s gross national income.

The final number was far less than the €1.03 trillion ($1.38 trillion) the EU’s executive arm, the EU Commission, had originally proposed.

Read More at OfficialWire . By Don Melvin.

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About F. Peter Brown

Editor at the Sound Money Institute and Associate Editor at the Western Center for Journalism. www.fpeterbrown.com

The Sound Money Institute is and educational organization dedicated to the stability and soundness of the United States Dollar. Faced with unprecedented pressure to spend beyond its means the United States Government has pressured the Federal Reserve Bank to monetize the debt or in other words they are printing currency to fund deficit spending by the US Treasury.

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