European Union governments and lawmakers agreed to grant €1 billion in aid to African farmers as they clinched a deal on next year's budget for the bloc yesterday.

The negotiators set the EU's 2009 spending at €116.1 billion, less than €124.5 billion advocated by Parliament but more than €114.9 billion proposed by governments.

Governments have been keen on a lean EU budget as they need to secure funds to boost economic growth amid the financial crisis.

Earlier European Commission President José Manuel Barroso said the EC's economic stimulus package would include significant budgetary expansion, referring to national budgets rather than the EU's.

The budget is traditionally dominated by agricultural subsidies, aid for poorer regions and programmes to boost employment and economic growth.

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