E.U. Leaders Working on Budget Deal

Failed to reach agreement in November

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.