Mr Hollande's government is due to present a revised budget plan to parliament next month.

BBC: France in parliamentary election key to Hollande agenda

President of the European Council Herman Van Rompuy had circulated a revised proposal for the new budget at the start of the two-day summit and said he believed a compromise was possible.

BBC: EU budget: David Cameron says deal 'not good enough'

Local authority leaders originally forecast 100, 000 posts would go as a result of October's Spending Review, but revised up its estimate a month later after studying the impact of planned town hall budget cuts.

BBC: GMB warns of 200,000 council job losses in England