The agreement provides that payments will be in three phases over the period 2008-2010, "said French Budget Minister Eric Woerth, with" a first payment in 2008 of 262 million euros.
The second installment will be 568 million euros in 2009 and the balance of 180 million euros will be disbursed in 2010.
"We back a very strong commitment of the European Union with a concrete answer to the food crisis," said the minister.
"We kept our promises, for his part commented on the European Budget Commissioner Dalia Grybaukaité.
This billion must help developing countries to increase their agricultural production through the financing of purchases of seed and fertilizer.
The initial idea was to collect this amount on unused amounts of the Common Agricultural Policy (CAP), but Germany and several other states have refused to use those funds for activities outside the EU.
Pressed by the Development Commissioner Louis Michel, who accused them of inventing "excuses", the argentiers the EU have been forced to fund the cash and juggle money from various sources.
Part of the funds will be deducted from the amounts provided for EU external action, others on emergency aid reserve and the balance to the instrument called "flexibility", which allows the EU to meet unforeseen needs.
Member states will have to inject a little money - 240 million euros in 2009 on the emergency aid reserve - to complete the transaction. This is a condition that the European Parliament agreed to endorse the funding mechanism.
"It took a little time to unblock the aid, but an agreement at 27 is never easy," said Mr. Woerth.
Budget ministers may soon have to redo the exercise of juggling of lines, to help finance the relaunch plan that the European Commission must present next Wednesday.
For the 2009 budget - which must respect the overall financial perspective for 2007-2013 - the ministers agreed on a total expenditure of 116.1 billion euros.
The European Parliament, which requested a budget of 124.48 billion euros, is to vote on the proposal in December.
This relaunch plan, which could reach 130 billion euros, should be financed mainly by contributions from Member States, up to 1% of GDP, said Wednesday the German Minister of Economy Michael Glos.
The budget should be put to use through the redeployment of funds or funds already programmed, or acceleration of certain investment programs within the framework of EU aid to disadvantaged regions for example.
"We will adapt the financial details of the circumstances," assured Mr. Woerth Friday.
"It is useless to have money and not spend," he added, referring to the amounts allocated for structural funds and not used.
"The Commission proposal aims to accelerate the full implementation of the budget. But we can not exclude other proposals for the future, if we are put under pressure," said Mrs Grybauskaite.

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