The draft annual budget, which would total 114.9 billion euros (182.7 billion U.S. dollars), was "unanimously adopted" at a meeting of EU budget ministers, the EU's French Presidency said ina statement.
It was 1.77 billion euros less than the amount the commission had originally sought, with the biggest cut of 721 million euros on items to improve competitiveness and employment.
"The smooth adoption of the draft budget shows the determination of the council to foster good management of community public funds, and to respond to the concerns of European citizens," the French Presidency said.
But the commission said it was disappointed with the reduction.
Then the draft budget would be examined and amended at first reading by the European Parliament in autumn. The second reading by EU governments would take place in November and by the parliament in December.
Once voted, the budget would enter into effect on Jan. 1, 2009.
