British Prime Minister David Cameron has launched a bid to cap the European Union's long-term budget, it has emerged.
At the last EU summit Mr Cameron circulated a letter recommending next year's EU budget should rise by no more than 2.9%.
Now a letter is circulating in Brussels calling for restraint between 2014 and 2020, with spending frozen at 2013 levels and only increased in line with inflation.
Downing Street declined to comment.
It comes as the 27 EU leaders, meeting in Brussels, agreed to set up a permanent mechanism to bail out any member state whose debt problems threaten the 16-nation eurozone.
AngerThe eurozone stability mechanism will require a change to the EU's Lisbon Treaty - but the wording has now been agreed, diplomats say.
EU President Herman Van Rompuy said leaders were ready to do whatever was required to protect the currency.
Mr Cameron's call for budgetary restraint is reported to have gained initial support from France and Germany.
Diplomats said the final version of the letter was still being drafted, but could be made public before Christmas.
One draft is understood to say that in austere times when people are feeling pain the EU must live within its means.
The battle over the size of the EU's long-term budget, which covers the period 2014 t0 2020, is due to start in the middle of next year.
There is anger among poorer EU countries at the line Britain is pushing in Brussels, which could see aid to them cut.
Polish Prime Minister Donald Turk said his country would resist any attempt to cut the EU's budget.
Some diplomats were also reportedly unhappy that Mr Cameron had chosen a debt crisis summit to focus on the budget. BBC News
