Euro makes gains as EU leaders prepare for budget summit

<p>The euro has made gains as EU leaders prepare for two days of budget discussions.</p>

The euro has made gains in foreign exchange trading this morning (February 7th) versus both the dollar and sterling, as European Union (EU) leaders prepare for two days of crucial budget talks.

Commencing today and finishing late tomorrow, the Brussels summit aims to thrash out the 27-nation region's spending plans for the next seven years.

However, leaders are divided, as northern countries including the UK and Germany want to lower EU spending to mirror the cuts being administered by national governments across the continent.

Meanwhile, the argument for higher spending is supported by many countries that are net beneficiaries relying on EU funding to keep their economies afloat – including Spain, Poland and Hungary.

David Cameron says he will stand his ground in the debate, with one spokesman stating: "The UK's position is unchanged since the November European Council – spending needs to be reduced further than the proposals on the table."

At 08:50 GMT, the euro was up against both the dollar and pound to €1 buying £0.856 and $1.356.

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