European Union leaders agreed yesterday to a seven-year budget worth €959 billion (Dh4.71 trillion), the first decrease in a budget in the union's history.
The prior seven-year budget was for €975bn.
The European Council president, Herman Van Rompuy, said that the agreement had been reached after two days of negotiations.
The €959bn is about 7 per cent less than the €1.03tn that the EU's executive arm, the EU Commission, had originally proposed.
The heated debate over what the EU pledged to spend on everything from infrastructure to development aid laid bare divisions over what the role of the union should be.
"It's done!" a spokesman for the German Chancellor, Angela Merkel, tweeted. "The 27 EU members have agreed on a budgetary framework for 2014-2020. Europe has shown itself to be capable of acting."
"The effort was worth it," Ms Merkel said. "The agreement is good and important."
The European parliament must still approve the deal - and legislators there suggested that drastic cuts would be unacceptable.
"This agreement will not strengthen the competitiveness of the European economy but weaken it," said a statement by the leaders of the four largest political groups in the parliament. "It is not in the prime interest of our European citizens."
The deal that emerged leaned towards the position of countries led by Britain, which insisted that the EU could not look for more money at a time of belt-tightening across Europe.
But it seemed a loss for many of the newer - and generally poorer - members. That group, led by Poland and France, argued that Europe meant nothing if the budget were not used to bridge the gap between rich and poor members and help restart growth.
Both sides had threatened to walk away from the table if they did not get what they wanted. The first summit to negotiate a budget collapsed in November.
Mr Van Rompuy noted, however, that the budget did put aside €6bn to alleviate youth unemployment, which has skyrocketed because of the economic crisis over the past few years, notably in Greece and Spain.
The budget also includes items meant to generate economic growth in the future, such as research and development, increasing digitalisation and a new, more accurate satellite navigation system.
* Associated Press
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The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5