A deal has been reached between the Irish presidency of the EU and senior figures from the European Parliament over the EU's seven-year budget.

It follows a high-level meeting in Brussels this morning involving Taoiseach Enda Kenny, Tánaiste Eamon Gilmore, the President of the European Parliament and the parliament's chief negotiator.

The meeting was arranged to try to break the deadlock over the €960 billion budget.

EU member states must now endorse the agreement before it is sent to the European Parliament for a vote.

It is understood that, under the deal, monies not paid out at the end of each year can be rolled over into the next year of the budget cycle to facilitate more spending.

However, in the last three years of the cycle there will be a cap on what can be rolled over.

Taoiseach Enda Kenny has said the political agreement was an important day for Europe and an example of the EU rising to a challenge.

Tánaiste Eamon Gilmore acted as lead negotiator on behalf of member states.

European Commission President José Manuel Barroso has said the deal on the EU budget would speed up spending on youth employment.

This evening, EU leaders are meeting in Brussels for the last EU summit of the Irish presidency.

It is expected to focus on the provision of jobs.

Nearly a quarter of people aged 18 to 25 in the EU have no job - in Greece and Spain it is more than half.