EU agrees tougher budget, debt rules

European Union leaders agreed a new "fiscal compact" on tighter budget and debt rules for the euro zone in summit talks on Thursday, an EU official said.

"There is a deal between leaders on the new fiscal compact," said the EU official, adding that among the points of agreement was an accord that sanctions on budget rule-breakers would apply automatically unless blocked by a qualified majority -- or three-quarters of member states. (Reuters)