The second day of the European Union (EU) summit focusing on the European 2014-2020 budget has been underway since 5:30 London time this morning and UK Prime Minister David Cameron is reportedly leading the charge to cut spending in the 27 member bloc.

It's understood that Cameron has the tacit approval of German Chancellor Angela Merkel and that the EU is set to cut the budget in approximately €33bn to around €960bn. That number compares to the €1.047tn proposal and the €994bn that was earmarked for the current budget cycle.

If the agreement goes through, it would be the first time in the history of the UE that spending has been reduced. Cameron's position was reiterated before he entered yesterday's meetings. "The numbers that were put forward were much to high. They need to come down, and if they don't come down, there won't be a deal," he said.

On the opposing side, France, Italy and Spain are arguing for lower cuts because they believe spending is necessary to support economic growth. According to reports however, an agreement is expected to be reached later today.

JM

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