* Breakaway F1 series averted after deal reached
* Teams win battle with Mosley who will not seek re-election
* 2009 rules will remain in place for immediate future
(Adds details on Mosley's immediate future, statements)
By Estelle Shirbon
PARIS, June 24 Peace broke out in Formula One on
Wednesday when a deal was reached to avert a breakaway series
and teams agreed to further cut costs without a budget cap.
Embattled FIA president Max Mosley, who said he would not be
seeking re-election, had been at loggerheads with eight teams
over his plans to introduce a cap for 2010.
"The basic news is that there will be no split. There will
be one championship in 2010 which is I think something we all
hoped," Mosley told a news conference following a meeting of the
FIA's World Motor Sport Council.
"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."
The Formula One Teams' Association (FOTA), headed by Ferrari
president Luca di Montezemolo, had objected to the budget cap
which they felt could lead to a two-tier series with the teams
agreeing to the cap being allowed greater technical freedom.
The governing FIA further fuelled the furore this month by
publishing a 2010 entry list including all the existing 10 teams
and three new entrants despite the wrangling.
FOTA responded by announcing plans for a breakaway series
before last weekend's British Grand Prix but the teams have now
committed themselves to F1 until 2012 and the FIA generally.
The FIA published a statement outlining the agreement
(here) and reiterated that the 10 current teams
plus Manor, U.S. F1 and Campos had been accepted for next year.
However, the three new teams had agreed to join when a
budget cap was still planned.
Mosley, who earlier this week hinted he wanted to stay on in
his post and would not be forced out, will now step down when
his mandate ends in October.
"I will now be able to look at Formula One knowing it's
peaceful and stable and be able to stop as was always my
intention in October of this year so I won't present myself for
re-election now that we've got peace," Mosley said.
He will in effect step away from Formula One immediately and
will only govern other motor sports in the coming months, with
the FIA Senate looking after F1.
The Briton survived calls for his resignation last year
after a sado-masochistic sex scandal but won a confidence vote.
F1 commercial supremo Bernie Ecclestone was thrilled.
"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," he told the news conference.
"I'm also I must say very, very, very happy the teams have
come to their senses to stop spending large amounts of money."
Montezemolo, who will chair a FOTA meeting in Bologna on
Thursday, was pleased this year's rules will continue.
"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," he said.
Both sides gave the impression of compromise but a Ferrari
statement (www.ferrari.it) gave no doubt who it thought had won
"The FIA's World Motor Sports Council has today approved all
FOTA's proposals," it said. "The objective is to avoid
continuous changes decided by one person alone."
(Additional reporting by Alan Baldwin and Paris bureau)
(Writing by Mark Meadows; Editing by Ed Osmond; To query or
comment on this story email firstname.lastname@example.org)