BRUSSELS, Dec. 17 (Xinhuanet) -- European Union (EU) leaders have reached an agreement on the bloc's 2007-2013 budget, British Prime Minister Tony Blair confirmed on early Saturday.

British Prime Minister Tony Blair (C) speaks next to the President of the European Commission Jose Manuel Barroso (R), and British Foreign Secretary Jack Straw at the end of the European Union summit in Brussels Dec. 16. (Retuers)

    The deal came after Britain agreed to cut its rebate by 10.5 billion euros (12.57 billion U.S. dollars ) over seven years and proposed a 2007-2013 budget of 862.3 billion euros (1.04 trillion U.S. dollars), or 1.045 percent of EU output, up from 1.03 percent in an earlier proposal.

    "This is an agreement that allows Europe to move forward (and) ...allows us to demonstrate the right solidarity," Blair, whose country holds the rotating EU presidency, told a press conference here.

    European Commission President Jose Manuel Barroso also described the deal as an important political signal for Europe. Enditem