Euro steady as leaders edge towards budget compromise

<p>The euro is steady as leaders inch closer to a seven-year budget deal.</p>

The euro is steady in forex trading this morning (February 8th) as leaders edge towards a compromise for the European Union's seven-year budget plan.

It is hoped a decision will be reached today, the second of a two-day summit in Brussels, after similar talks collapsed in November 2012.

According to officials, all-night talks have led to a broad framework being agreed upon, but there is still a lot of hard bargaining to be done.

Leaders are looking into proposals to fix the ceiling for spending at €960 billion – a cut of more than €12 billion from the proposal made at the last meeting.

However, today's discussions will have to be handled carefully, as any one of the 27 member states can veto a budget deal, derailing the negotiations.

At 09:30 GMT, the euro rose by 0.2 per cent against the dollar to €1 buying $1.342, while the single currency was stable versus the pound at £0.852.

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