Max Mosley, the president of the FIA had earlier imposed that the regulation is a must for all teams which prompted them to withdraw their participation for next season and instead decided to form a series on their own.

Mosley, who also reportedly said that he will be stepping down when his term as president is due this year said “The basic news is that there will be no split. There will be one champion¬ship in 2010 which is I think something we all hoped. We’ve reached agreement on a number of items. In particular we’ve reached agreement on reduction of costs. We’ve had significant help from the teams. The objective is to get back to early 1990s levels within two years.”

Luca di Montezemolo, the president of the FOTA (Formula One Teams’ Association) said that the budget cap was not a necessity after the current economy crisis where the teams are already making their own cost cutting exercises. He said “I think the decisions we have shared this morning are important. We will have the rules of 2009, same rules for everybody. It means that we have stability,”

Mosley added that “Now the manufacturers, that’s to say FOTA, have committed commercially until 2012 … as far as the FIA are concerned the commitment is indefinite. I will now be able to look at F1 know¬ing it’s peaceful and stable and be able to stop as was always my in¬¬tention in October of this year so I won’t present myself for re-election now that we’ve got peace,”

Bernie Ecclestone, the owner of the series is upbeat with the latest positive developments of this issue. He said “I’m obviously very, very happy that common sense has prevailed which I’ve always believed it would because the alternative was not good at all. I’m also I must say very, very, very happy that the teams have come to their senses to stop spending large amounts of money.”