EU reaches political deal on seven-year budget
The deal on the 2014-2020 budget was reached between member states and European Parliament leaders, he said.
The 960bn-euro (£822bn; $1.3tn) budget cuts real spending for the first time.
Speaking in Brussels as EU leaders gathered for a summit, Mr Barroso said the deal would speed up spending on youth employment.
Nearly a quarter of people aged 18 to 25 in the EU have no job, while in Greece and Spain it is more than half.
EU leaders will consider mobilising 6bn euros (£5bn; $8bn) earlier than planned to help youth training schemes.
Draft plans have also been agreed on agricultural reform and how to rescue troubled banks.
Amid widespread resistance to the ongoing austerity measures in the eurozone, trade unions in Portugal began a 24-hour strike on Thursday.
Public transport crawled to a halt as a result of the action by unions representing more than a million workers.
The 2014-2020 budget was agreed at a summit in February but its ratification had been blocked by the parliament.
It appears that under the new deal, the figures agreed will remain unchanged but, in a concession to the European Parliament, unspent money will be transferred from one year to the next, rather than returning to national budgets as at present.
The speaker of the European Parliament, Martin Schulz, confirmed the deal in a tweet and urged MEPs to give it their backing.
A European Parliament vote on the budget could come as early as next week, a source at the parliament told the BBC News website.
Job drive
European Council head Herman Van Rompuy said in a press releas e that youth employment schemes should be accelerated and youth mobility increased.
The Commission's Youth Guarantee plan would offer young people across Europe a quality apprenticeship or job in the first four months after becoming unemployed or leaving formal education.
A source at the European Commission said an extra 10bn euros in funding for the European Investment Bank (EIB) could be used to encourage private banks to lend more to small and medium-sized businesses (SMEs), which account for about 99% of businesses in the EU.
The draft summit conclusions, seen by the BBC, say the leaders note "the importance of shifting taxation away from labour as a means of increasing employability and boosting job creation and competitiveness".
Under the bank rescue deal, bank creditors and shareholders of failed banks would take the first hits, followed by savers with deposits of more than 100,000 euros.
If that is not enough, government help would be called upon, and taxpayers would be among the last to shoulder losses.
On Wednesday, negotiators agreed on an outline for reforming the Common Agricultural Policy to make farming more sustainable and help smaller producers.
Some countries would be allowed to link direct subsidies to output levels in certain regions, to help maintain output where farmers face natural or other constraints, such as the dairy farms of mountainous central France, Reuters news agency reports.
"Most farmers will now have to make extra efforts in order to receive the 'green' funding," EU Climate Action Commissioner Connie Hedegaard said.
Leaders are also expected to approve accession talks for Serbia, as well as formalising Croatia's entry into the EU next week.
Serbian Prime Minister Ivica Dacic said on the eve of the summit that he hoped to see his country join within five years at most.
Source: BBC NEWS
