EU leaders have agreed to cut the bloc’s spending for the first time in its history.
The headline figure of 960 billion euros is down by three percent from the last seven-year budget.
But member states have actually pledged less than that in payments.
Guy Verhofstadt, a former Belgian prime minister turned MEP and leader of the liberals in the European Parliament, said this budget would result in a 52 billion euro deficit.
“Heads of government say we must fix our public finances, pass a Stability pact (an EU rule on spending) and rein in our deficits,” he told euronews.
“But now we’ll have a deficit at the European level as a means of fixing their national problems.”
The largest parts of the budget remain agricultural and regional funds.
But EU officials say cash spent on farming will be gradually reduced over the seven year period to 28 percent of the total, from 39 percent now.
Ten billion euros will be shaved off future infrastructure projects, while the EU administration will be asked to find 1.5 billion euros of savings.
Six billion euros has been set aside to help countries where youth unemployment is more than 25 percent.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Russia unveils ‘straight’ flag, internet responds
- 3Seven reasons why Yanis Varoufakis is now a political legend
- 4Greek crisis: ‘Agreement reached’ after marathon talks
- 5International news | euronews, latest international news
- 6Nasa announces the discovery of an earth-like planet
- 7Latest News Bulletin
- 8French actor Gérard Depardieu ‘a threat to Ukraine national security’
- 9Is Saudi Arabia outlawing rainbows for being gay?
- 10Pluto: New Horizons space probe provides closest-ever pictures
- 11BREAKING: Formal nuclear deal reached with Iran, says diplomat
- 12International breaking news | euronews online world breaking news in video
- 13Greece votes ‘No’ in overwhelming rejection of bailout proposals
- 14‘Imposed’ bailout deal must be implemented, says Greek PM
- 15At least 10 dead in explosion in Turkish town close to border with Syria
- 16Greece clinches deal with eurogroup after marathon talks
- 17Berlusconi linked with a shock return to government – in Russia!
- 18Israel angry as Iran and West talk up nuclear deal
- 19Varoufakis resigns after Greek referendum
- 20The Pluto flyby : what we’ve learnt so far