GERMANY: Germany's DAX index inches up as EU leaders agree the framework for a new budget in Brussels

Record ID: 858213

  • Title: GERMANY: Germany's DAX index inches up as EU leaders agree the framework for a new budget in Brussels
  • Date: 8th February 2013
  • Summary: FRANKFURT, GERMANY (FEBRUARY 8, 2013) (REUTERS) EXTERIOR OF STOCK EXCHANGE TRADING FLOOR TRADERS BOARD SHOWING DAX GRAPH VARIOUS OF TRADERS VARIOUS OF BANKING STOCKS TRADERS BOARD SHOWING VALUES OF INDICES (SOUNDBITE) (German) FIDEL HELMER FROM HAUCK & AUFHAEUSER, SAYING: "The EU is calling on its member states to save, and in some cases save a lot. It's only fair that the EU has a rethink of its budget and in the case of doubt, even cuts its budget because it should really be setting a good example." VARIOUS OF TRADERS BOARD SHOWING PERCENTAGE CHANGE OF DAX TRADERS BOARD SHOWING DAX GRAPH WIDE OF TRADING FLOOR
  • Embargoed: 23rd February 2013 12:00
  • Keywords:
  • Location: Germany
  • City:
  • Country: Germany
  • Topics: Economy
  • Reuters ID: LVACADMOSXKVQL3GC8P9PD7ZJH76
  • Aspect Ratio:
  • Story Text: Germany's DAX index eased up slightly at the start of trading on Friday (February 8) as leaders met in Brussels agreed on the framework of a new long-term budget after 15 hours of through-the-night negotiation.
    At 0948GMT the DAX was up 0.17 percent.
    "The EU is calling on its member states to save, and in some cases save a lot. It's only fair that the EU has a rethink of its budget and in the case of doubt, even cuts its budget because it should really be setting a good example," Fidel Helmer from Hauck & Aufhaeuser told Reuters TV in Frankfurt.
    The agreement, which EU officials said would only be finalised later on Friday, strikes a tight balance between the demands of northern European countries such as Britain and the Netherlands that wanted a belt-tightening budget, and countries in the south and east such as France and Poland that wanted spending on farming subsidies and much-needed infrastructure.
    The officials said around 12 billion euros would be cut from the last budget proposal, made at a summit in November when agreement eluded leaders, bringing the headline ceiling for spending down to 960 billion over the full 2014-2020 plan.
    That represents a decrease of around three percent on the last multi-annual framework - the first time a long-term spending plan has seen a net reduction in the EU's history.
    While vast in headline terms, in annual terms the budget appropriation amounts to only around 140 billion euros, equivalent to just 1 percent of total EU economic output.
    The cuts agreed on Friday fell mainly on a new fund for cross-border transport, energy and telecoms projects, which was cut by more than 11 billion euros, and on pay and perks for EU officials - a top target for Britain - which were cut by around 1 billion euros, officials said.
    Spending on agriculture was spared further cuts and there was an increase of about 1.5 billion euros on rural development over the seven years, satisfying France, Italy and others.
    As well as the deal needing to be signed off by all EU leaders later on Friday, it must be approved by the European Parliament, an obstacle that could prove difficult. The European Parliament president has said he will not accept excessive cuts.
  • Copyright Holder: REUTERS
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