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Reports: EU finance ministers agree on details of small eurozone budget

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Reports: EU finance ministers agree on details of small eurozone budget

Eurozone finance ministers agreed on key elements of a common budget in a renewed attempt after initial talks fell through in June, media outlets reported.

The eurozone budget, which was agreed upon last year, would be used to boost investments, facilitate reforms, and spur growth in poorer economies, rather than an earlier intention to allocate it to help nations facing an economic downturn, Bloomberg News reported.

The budget is expected to create around €17 billion to €20 billion in funds, the size of which could be expanded through an intergovernmental agreement, according to Bloomberg and Reuters. The exact amount is anticipated to be finalized by the end of 2020.

Eighty percent of the budget would be allocated on the basis of nations' population and GDP per capita, while the rest would be reserved for flexible use, such as for specific reforms or to address significant challenges.

Ministers also agreed on the co-financing rate, which specifies the proportion of the amount allocated to governments from the budget and the amount they have to put up themselves. According to the agreement, countries would contribute 25% of funding themselves, which could be halved during "severe economic circumstances."

However, ministers again failed to concur on how the budget would be financed. In the negotiations conducted in June, French economy minister Bruno Le Maire proposed that the nations top up the budget through direct contributions, but Germany and the Netherlands objected to the proposal.

European Central Bank outgoing President Mario Draghi has been urging governments to set up a common budget to stimulate growth in the single currency bloc, which has been facing an economic slowdown.