Germany's Merkel and France's Macron say Europe must reform open-border Schengen area in light of recent terrorist attacks, in an online summit of continent's main leaders.
An alliance of "frugals", led by Prime Minister Mark Rutte of the Netherlands and Chancellor Sebastian Kurz of Austria, has been resisting calls for the bulk of funds to be doled out as non-repayable grants.
Europe is in the depths of its deepest recession since World War II and the leaders are seeking common ground on the terms of $857 billion stimulus package that would help lift those hardest hit by the pandemic.
Leaders are under pressure to find a compromise over the $2.1 trillion budget proposal, which includes an $825-billion new recovery instrument to help relaunch the European economy after the pandemic.
After British Prime Minister Boris Johnson's admission to an intensive care unit, many world leaders are wishing a quick recovery.
The Dutch result is a first test of the appeal of the Eurosceptic parties contesting elections across the bloc through Sunday. The outcome will reassure established parties fearing a surge among far-right and Eurosceptic challengers.
European leaders offered Britain a six-month delay to its Brexit departure, officials said. Britain's PM Theresa May, who had sought a delay only until June 30, has agreed to the offer.
EU leaders have rebuffed May's request to sweeten the divorce agreement and help her win over a hostile UK Parliament, and Juncker complained to reporters about a political climate which was sometimes "nebulous, imprecise."
British Prime Minister Theresa May steps up efforts to sell her European Union divorce deal, as rebel lawmakers in her party say she has to go.
The meeting between President Erdogan and Dutch PM Mark Rutte lasted almost one hour.
Divorce deal approved by Britain and European Union sets stage for end of nearly 46-year marriage as leaders at a special Brussels summit express sadness at "tragic" end of British EU membership.
German Chancellor Angela Merkel is in Paris for talks with French President Emmanuel Macron, who is eager to push his vision for an overhaul of EU institutions amid opposition from other EU member states.
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