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.
The summit was supposed to end Saturday but more negotiations lay ahead for leaders as they dealt with their toughest crisis in years, one that has burdened the bloc with its worst recession ever.
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.
The first such study in Europe was based on testing a representative sample of more than 1,500 people and disproves the idea of herd immunity as a viable policy option.
European Union leaders began talks on a joint 2021-27 budget that will need to fill $81 billion hole left by Britain's departure just as they face costly climate and other challenges.
The agreement combines pledges of action against climate change, Green priorities, with moves to cut Austrians' tax burden and with the tough line on migration that Kurz has made a hallmark of his People's Party.
Both Kurz and Werner Kogler from the Greens, who led the negotiations between the two parties, told reporters in Vienna they had hammered out a government program that will be presented to the public in detail on Thursday afternoon.
Conservative leader Sebastian Kurz's party is on course to win snap parliamentary election and has several options for a coalition partner that will give it a stable majority, a projection based on a partial vote count shows.
After a heated debate, 343 MPs backed the incoming coalition of the anti-establishment Five Star Movement and centre-left Democratic Party, while 263 voted against, according to the official count.
The fall of the far-right Austrian government is not just about political parties, it is deeply embedded in society.
After two years of government, Kurz's Austrian People’s Party could not survive a vote of no confidence. Austria's government has failed, but who will emerge from the rubble to take over?
Austrian Chancellor Sebastian Kurz has been ousted in a no-confidence vote. His deputy chancellor Finance Minister Hartwig Loeger takes over as provisional Chancellor until the interim government is appointed.
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