European Union leaders for the first time in the bloc's history agreed to a cut in spending as they thrashed out a seven-year budget Friday in marathon talks in Brussels, Belgium. The deal, which covers the period from 2014 to 2020, will limit actual EU spending to €908 billion ($1.2 trillion), with a spending ceiling of 959 billion euros. The European Commission, the executive arm of the EU, had initially proposed a 5% increase to its budget for the seven-year period, to about €1 trillion ($1.4 trillion). European Council President Herman Van Rompuy hailed the deal reached Friday -- after talks he said were the longest of his presidency -- as balanced and oriented toward future competitiveness and growth, according to a report of CNN. "It was no easy task," he said, "but it was worth working for." The Multiannual Financial Framework, as the seven-year budget is known, must still be approved by the European Parliament.
