Major drama was avoided as EU leaders met via videoconference to discuss the deadlock over the bloc's $2.1 trillion long-term budget and COVID-19 Recovery Fund. On Monday, Hungary and Poland vetoed the budget and post-pandemic relief fund amid opposition to clauses that link EU funds to rule of law and democratic standards. 

The matter was first on the agenda during Thursday's meeting with a 16-minute discussion on the impasse. Germany's Chancellor Angela Merkel began proceedings with a call for all sides to take responsibility in securing a deal to release the much-needed emergency funds. 

Hungary's Prime Minister Viktor Orban is reported to have then given a brief explanation of his country's stance, as did the leaders of Poland and Slovenia. 

Following the meeting, EU Council President Charles Michel said "We need to stay united. This financial package is essential for our economic recovery. We need to implement it as soon as possible. We will continue the discussions to find an acceptable solution for all."

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EU Commission President Ursula von der Leyen said it was "equally important for the future of the European Union to have a budget and the rule of law."

She added: "Millions of European businesses and citizens are waiting for the answer in the midst of this crisis and the strength of our union has always been to overcome difficult situations by engaging with each other. We will continue to work hard to reach an agreement."

Germany, the current holder of the EU Council Presidency, has charged itself with finding a way out of the deadlock. Foreign Minister Heiko Maas said he is optimistic a solution can be found ahead of the next EU Council meeting on the December 10. 

Analysts in Brussels predict Warsaw and Budapest will soften their position to prevent their own countries being cut off from badly needed post-pandemic funding.

The bloc's coordinated response to the COVID-19 pandemic was also on the agenda, addressing rapid testing, mutual recognition of tests and the coordination of measures. 

Michel said there have been "promising signs since our last meeting, but remain cautious and vigilant. We cannot let down our guard."

There was broad support to increase coordination on testing, with rapid Antigen tests and PCR tests complementary. Many leaders "pointed to the logistical challenges of vaccines," with the need "to be as best prepared as possible once vaccines have been authorized.”

Von der Leyen said five contracts had been negotiated with pharmaceutical companies for vaccines, with the portfolio available to all member states.