EU agrees on tight 2010 budget at 122.9 bln euros

European Union governments pushed through cuts in the bloc's 2010 draft budget on Wednesday as they fought to control spending which is soaring due to the economic crisis.

Negotiators from the EU's 27 member states reached a deal with the European Parliament to set the bloc's budget at 122.9 billion euros ($184 billion) next year, less than the 127.5 billion spending proposed by the legislature.

Officials said that despite the cuts, which affected mostly traditional aid for poor regions, the negotiators agreed on an additional 2.4 billion euros in special measures to combat the crisis.

Governments are pouring billions of euros into their economies to battle the crisis so they are eager to keep other spending under control.

About an extra 300 million euros was secured to support milk producers and 75 million for the decommissioning of the Kozloduy nuclear power plant in Bulgaria.

In next year's budget some 45 percent of spending will still go to farm subsidies and rural development and a third in aid for poor regions.

In 2010, EU governments will start negotiating reform of the budget to shift spending away from agriculture towards research and innovation, politicians say.