Some EU 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.
Merkel gives instructions to #Bulgaria’s PM Borisov on how to wear a mask.
French leader banged the table, attacked Austrian Chancellor Sebastian Kurz for leaving the room to make a phone call and accused Rutte of behaving like former British premier David Cameron – who took a hard line at EU summits but ended up leading his country into a referendum to quit the bloc.
EU leaders battled on into the early hours of Monday to try and break the deadlock as their summit on a huge coronavirus rescue package stretched into a fourth day in Brussels.
President of the European Council Charles Michel (L), Germany’s Chancellor Angela Merkel (C), France’s President Emmanuel Macron and President of the European Commission Ursula von der Leyen during a meeting at the first face-to-face EU summit resolve financial aid on coronavirus disease and try to hammer Covid fiscal for EU members to boost economy.
Fourth day talks chaired by EU Council President Charles Michel have failed to yield agreement over the size and rules for a 750-billion-euro ($860-billion) package of loans and grants to help Europe out of a economic crisis caused by the pandemic.
EU leaders on a working dinner with the 27 leaders on Sunday, Michel made a fresh effort to win over the coalition of “Frugals” the Netherlands, Sweden, Austria, Denmark and Finland which has sought to cut the size of the package and impose strict rules on how fiscal aid to be used.
Rutte wants member states to have a veto on national economic plans by the likes of Italy and Spain, in order to oblige them to pursue reforms to borrowing and their labour and pensions markets an effort that was angrily resisted by his Italian counterpart, Giuseppe Conte.
Hungary’s premier Viktor Orban accused Rutte of waging a personal vendetta against him and his country and vowed to prevent any agreement on efforts to tie EU spending to recipient countries’ respect for EU standards.