Hard-fought deals on the European Union budget and funding future bank bailouts gave EU leaders a boost going into a summit Thursday,injecting fresh credibility into their efforts to end a spiral of financial and economic troubles.
Early Thursday,the heads of the European Commission and European Parliament overcame months of divisions over a new seven-year,euro 960 billion ($1.3 trillion) budget that will finance EU projects through 2020.
The agreement was rapidly backed by Parliaments main caucus leaders,setting the stage for a swift approval vote next week. The budget includes the first cuts to EU spending in history,coming at a time when many of the blocs countries are in recession and struggling to reduce their own national debt. The budget deal came only hours after EU finance ministers reached a deal determining who will take losses on future bank bailouts,so that taxpayers dont have to.
That is a key step toward establishing a banking union for Europe,aimed at restoring stability.