BRUSSELS, June 6(Xinhuanet)-- The European Union(EU)'s executive said Monday it has reduced member states contributions to the 2005 EU budget by a further 526 million euros.

This is the second time this year that the European Commission(EC) adjusts member states contributions downwards.

The EC said fresh economic data and a surplus in the Guarantee Fund for external actions last year are the main reasons for the modification.

In a new amended budget of some 102 billion euros the EC proposes major changes for member states such as the bloc's big powers Britain and Germany, with a reduction of 909 million and 320 million euros respectively.

Earlier in May the EC proposed a 2,737 million reduction as a result of a surplus in the 2004 budget. Together with Monday's proposal the contribution for most member states will be reduced.

"This is good news." Dalia Grybauskaite, EU Commissioner for Financial Planning and Budget said,"This will benefit member states which will have added resources for national budgets. They also now have a clearer picture of their contributions for this year".

Data on growth rates, inflation, trade and exchange rates are used to calculate how much each member state should pay into the EU budget each year. New data shows that 20 out of EU's 25 member states will see their contributions reduced. Enditem