Netherlands' Prime Minister Mark Rutte (left) looks on next to Germany's Chancellor Angela Merkel ( 2nd left), President of the European Commission Ursula von der Leyen (2nd right) and France's President Emmanuel Macron prior the start of the European Council building in Brussels, on July 18, 2020, as the leaders of the European Union hold their first face-to-face summit over a post-virus economic rescue plan. (PHOTO / AFP)

BRUSSELS - The European parliament will withhold support for any deal struck by EU governments on the bloc’s huge coronavirus stimulus package if it fails to meet certain conditions, its leader said on Monday.

An EU summit spilled into its fourth day on Monday, as member countries wrangled over a proposed 1.8-trillion-euro (US$2 trillion) package for the European Union’s next long-term budget and a coronavirus economic recovery fund

An EU summit spilled into its fourth day on Monday, as member countries wrangled over a proposed 1.8-trillion-euro (US$2 trillion) package for the European Union’s next long-term budget and a coronavirus economic recovery fund.

EU lawmakers want the package to include measures to defend the rule of law, which could freeze funding to countries flouting democratic principles. Hungary, backed by Poland, has threatened to veto the package if its disbursement was made dependent on such conditions.

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David Sassoli told EU leaders that even if they strike a deal, the package will still need to win approval from the European parliament.

“The European parliament has set out its priorities and it expects them to be met,” he said in a statement.

“If these conditions are not sufficiently met, the European parliament will not give its consent.”

Lawmakers also want an end to reductions on contributions to the EU’s joint coffers, currently received by rich net payers.

Parliament wants new EU taxes to help pay back the 750 billion euros the commission plans to borrow on the market to create a recovery fund for member states. On the table are possible new levies on carbon dioxide emissions and single-use plastic waste.

ALSO READ: EU leaders deadlocked over COVID-19 recovery pla

EU leaders were due to resume talks at 1400 GMT, with European Council President Charles Michel expected to put forward a new basis for a deal to bridge the competing demands of north and southern Europe.

This developed as signs emerged that leaders of northern European Union countries were willing to compromise on a stimulus plan on Monday.

Divided and slow to respond at the start of the coronavirus outbreak in Europe, EU leaders believe they now have a chance to redeem themselves with an aid plan that would show Europeans the bloc can react to a crisis.

But old grievances between countries less affected by the pandemic and the indebted countries of Italy and Greece, whose economies are in freefall, have resurfaced, pitting Rome against The Hague and its allies in Stockholm, Copenhagen and Vienna.

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“An agreement is a necessity”, French Finance Minister Bruno Le Maire told French BFM TV on Monday as weary diplomats slept or prepared for another day in what could be the longest-ever EU summit.

Within the 750 billion euro recovery fund, 390 billion euros could be considered as non-repayable grants, diplomats said, a compromise between the 350 billion level of the five “frugals” and the 400 billion euros demanded by France and Germany.

There was no immediate clarity on whether a deal was in the making, but Austrian Chancellor Sebastian Kurz told ORF radio he was satisfied with the negotiations. He also praised the blocking minority tactics.

“It was definitely the best decision that the group of the frugals...has been formed,” Kurz said. “There were the four of us, now there are five of us. These are all small countries, which alone would have no weight at all.”