MNI SOURCES: VTC Not Right Format For EU Budget Deal Talks

European Union leaders meeting Thursday decided that a video conference is not an appropriate format in which to broker a politically difficult compromise with Poland and Hungary over their objections to attaching Rule of Law conditions to the next EU budget, a senior Brussels official said.

"A VTC is not the appropriate format to discuss such a complicated issue," the EU source said.

"We do not underestimate the seriousness of the situation and believe we need to implement the agreement of July ASAP," the official added.

The blocking moves by Poland and Hungary threaten to delay the EU's next seven year Budget and also the EU's EUR750bn Next Generation/Recovery Fund.

"An agreement is, however, necessary to implement the deal," the source added.

Other sources suggested that the discussion of the Budget impasse lasted just 15 minutes, with EU President Charles Michel, German Chancellor Angela Merkel as well as the leaders of Hungary and Poland making contributions.

EU officials believe that a compromise on the Rule of Law/EU budget issue may need to be decided at a face-to-face summit. The next such summit is due to be held in Brussels Dec 10-11 and that the German presidency will need to undertake high-level contacts with relevant national capitals beforehand.