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Finance ministers agree to freeze nearly €500m unless Hungary corrects public deficit by end of the year.
The European Union's aid to economically deprived regions and social groups has become a battleground for arguments over the size of the Union's budget.
Co-financing share cut to 5% for six member states.
The Parliament warns against shrinking the budget for cohesion policies.
Regional policy could be the biggest victim when the EU begins the fight over where to cut back spending.