BERLIN -- European Union leaders wrapped up two years of negotiations Friday with a complex agreement to control finances so the EU can afford to open its doors to new members from eastern Europe over the coming decade.
The compromise came after 20 hours' nonstop haggling over how to share the EU's $92 billion annual budget through 2006. The 15 EU leaders' determination to defend national interests left a package that fell short of the sweeping overhaul originally foreseen.France stood staunchly by its farmers, Spain defended its development aid, and Britain refused to leave without its special budget rebate intact.
"It was an immensely difficult and hugely complex negotiation. But the changes pave the way for enlargement," said British Prime Minister Tony Blair. "Spending has been put far more firmly under control than ever before."
Reining in spending was considered necessary to ensure the union will be able to fund the entry of up to a dozen new members. Poland, Hungary and the Czech Republic lead the list of countries waiting to join.
The biggest potential target was the farm subsidies program, which makes up 42 percent of the total budget.
But under pressure from France, the leaders shied away from more radical reforms of the subsidies, delaying or reducing planned cuts in cereal and milk subsidies.
The new accord keeps farm subsidy spending below a total $290 billion for 2000-2006, when the first group of new members are expected. A further $32.8 billion was set aside for rural development in farm areas.
Spain lobbied to prevent a lower cap on development aid for the union's poorer regions. In the end, the agreement set aside $230 billion for public works and job-creation projects in these regions.
Britain won grudging acceptance from its EU partners for an extension of its cherished annual rebate, given in 1984 to compensate London for years of lopsided contributions to the union. The rebate was worth about $3.8 billion in 1998.
Germany, the summit's host, had sought to cut $3.8 billion from its net contribution to EU coffers, but came away with savings of just $760 million.
The deal also makes a vague call for EU executive and national governments to "pursue additional savings" to keep spending on farm subsidies at the current level of $43.7 billion a year.
Also waiting to join the union are Estonia, Slovenia, Cyprus and perhaps Malta. Romania, Bulgaria, Latvia, Slovakia and Lithuania have also started membership talks.