TAOISEACH Enda Kenny has said the agreement reached on the €960bn EU Budget was an important day for Europe.
The Budget will finance the EU and its programmes for the next seven years.
Speaking in Brussels this morning, Mr Kenny said it was an example of the EU rising to the challenge.
"I think it's an important day for 500 million citizens. It is also an important day for 26 million people who are unemployed," he said.
The conclusion of the Budget deal is a major success for the Irish EU presidency - which is finishing its six-month stint this week.
Although the decision has to be approved by the European Parliament and EU leaders, Mr Kenny expressed confidence that it would get the go ahead.
Tanaiste Eamon Gilmore, who led the negotiations on behalf of EU leaders, said it was an example of European institutions working well.
European Commission President Jose Manuel Barroso thanked Mr Kenny for his work as head of the Irish EU Presidency and said it was a good deal for Europe.