A peace deal was reached in Formula One to avoid a breakaway series and the teams agreed on further cost-cutting. FIA president Max Mosley said he would not seek re-election. He had been locking horns with eight teams on his plans to implement budget cap. Mosley confirmed during a news conference that 2010 would have one championship. 

He said that the teams have reached on an agreement and the aim was to get back to the levels of early 1990s in the next two years. Formula One Teams’ Association (FOTA), which is headed by Ferrari President, Luca di Montezemolo, had raised objections over the budget cap, which could lead to a two-tier series.

FOTA had said that the teams were already in the process of cost-cutting and no separate regulation was needed. FIA added fuel to the matter by giving out entry list for 2010 including 10 existing teams and three new teams despite the bickering. FOTA had threatened plans of a breakaway series next year before the British Grand Prix. But now the teams have committed to formula one until 2012.

Mosley who had earlier expressed desire to stay on, would step down when his tenure ends in October. Formula One supremo Bernie Ecclestone is happy that the matter has ended well. FOTA boss Montezemolo has also expressed happiness about the fact that the current rules would be applicable for the next season as well.