European Union negotiators reached agreement on the bloc’s 2015 budget under a deal that also provides increased funds to pay outstanding 2014 bills. The accord on the EU’s 141 billion-euro ($174 billion) spending plan for next year followed U.K. resistance to paying a 2.1 billion-euro surcharge to the 2014 budget. Under a compromise reached last month, Britain and eight other countries would have until Sept. 1, 2015, to transfer their extra payments without being charged interest. “This agreement allows us to safeguard the budgets of member states and facilitates the search for resources for growth,” Italian Finance Minister Pier Carlo Padoan, whose government currently holds the rotating EU presidency, told reporters today in Brussels. The deal allows the bloc “to avoid any future problems,” he said. The 2015 budget accord needs formal approval by EU governments and the European Parliament later this month. The negotiated package “provides for an increase of payments by 3.5 billion euros to tackle the unprecedented scale of unpaid bills” in this year’s spending plan, the EU said in a statement. The increase in payments is covered by additional revenue from fines, a surplus from the 2013 budget and the revised estimates of surcharges on EU nations, which were the result of a changes to economic-output data dating as far back as 1995. After Britain objected to the size of its surcharge, a new system is being implemented that will give EU nations that face surcharges from the bloc the right to gain nine extra months to pay the amounts in the event of “exceptional circumstances.”
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