EU leaders are edging towards a compromise deal on the 2014-2020 budget after all-night talks, officials say.
A broad framework was reported to have been agreed, but hard bargaining still lies ahead at the Brussels summit.
Leaders are studying proposals for a 908bn euro (£774bn) budget for the full seven years - 5bn euros lower than an earlier proposal.
In November the leaders failed to reach agreement amid deep divisions over cuts - a key UK demand.
Prime Minister David Cameron said again on Thursday that he would not accept a deal unless further cuts were made.
Source: BBC. Read full article. (link)