Germany's Roth: Some EU countries are pressing for focus on loans rather than grants

Germany's Roth speaking

Germany's Minister of State for Europe Michael Roth is on the wires saying:

• Some EU countries are pressing for focus on loans rather than grants
• this will be one of the most difficult issues at the talks

Nevertheless, Roth spoke optimistically about a agreement on a recovery funding plan earlier today when he said:

"A great deal is at stake, the credibility of the European Union is at stake, and whether it will be able to show resolve and solidarity and come out of the current crisis"

The EU members will be meeting on Friday and Saturday to discuss the recovery funding plan. There is opposition from the so-called Frugal Four who are opposed to joining together as one to help those countries most seriously hurt including Spain and Italy.

The EU is proposing a €750 billion recovery fund. Germany's Merkel is spearheading the charge and has warned the frugal countries to not think that they could slash the EU blocs economic recovery package. As an olive branch is also promised that the EU countries must also show a willingness to reform their economies and make them more "future-proof".

The frugal countries include Sweden, the Netherlands, Denmark, and Austria