EU talks aimed at reaching an agreement on a huge post-coronavirus recovery fund have stretched into a fourth day.
There are reportedly deep differences between the leaders, who are trying to negotiate the deal at the same time as the bloc’s next long-term budget.
Some member states believe the proposed €750bn ($857bn; £680bn) package is too large and should come as repayable loans, rather than grants.
The talks are reported to have been testy, with tempers flaring at times.
In the early hours of Monday morning, French President Emmanuel Macron reportedly banged his hand on the table and threatened to walk out of the discussions.
And Dutch Prime Minister Mark Rutte has admitted leaders were “close to failure” and talks could still “fall apart”.
Discussions are due to resume at 14:00 GMT on Monday for what is now the longest EU summit since Nice 2000, when talks lasted five days.
President of the European Council Charles Michel reminded the leaders that more than 600,000 people had died of the virus worldwide, and he hoped that the “headline tomorrow is that the EU has accomplished mission impossible”.
On Monday morning, the total number of confirmed cases of coronavirus was almost 14.5 million globally.
What’s hampering compromise?
EU leaders first met on Friday in Brussels to discuss the bloc’s €1tn seven-year budget and the planned stimulus package to help countries recover the pandemic.
It was the first face-to-face meeting between leaders since governments began imposing lockdowns in a bid to stop the spread of the virus in March.
Member states are split between those hit hardest by the outbreak, and those concerned about the costs of the recovery plan.
The self-proclaimed frugal four (Sweden, Denmark, Austria and the Netherlands) along with Finland, have been unwavering in their refusal to allow €500bn to be offered in the forms of grants to countries hardest hit by the effects of Covid-19.
Led by Mr Rutte, they now say that €375bn is as far as they will go, plus conditions including the right to block requests. The others, including Spain and Italy, are refusing to go below €400bn.
Italy in particular was one of the earliest European countries to suffer an outbreak and has recorded 35,000 deaths – one of the highest tolls in the world. Italian PM Giuseppe Conte said Europe was “under the blackmail of the ‘frugals'” and described negotiations as “heated”.
The new proposal being put on the table is €390bn. The Austrian chancellor has tweeted, suggesting there are signs of progress.
Big choices face EU leaders on Covid recovery cash
Are Italians losing faith in the EU?
Hungarian PM Viktor Orban accused Mr Rutte of a personal vendetta and of trying to link financial help to political issues. Mr Orban, and his ally Poland, have threatened to veto the package if it adopts a policy of withholding funds from nations who do not meet certain democratic principles.
Austrian Chancellor Sebastian Kurz said there was “a way to go”, but that it was possible a deal could be achieved.
Mrs Merkel said: “I still cannot say whether we will find a solution. There is a lot of goodwill but also many different positions.”
