The New Nation - Internet Edition

AFP, Brussels

European Union leaders looked poised Thursday to seal agreement on a package to fight global warming after concessions to nations concerned over the cost to industry during recession.

Italy's Silvio Berlusconi, one of the fiercest opponents of the proposals that had been on the table, withdrew his veto threat after several hours of negotiations as sources at an EU summit said a consensus was now emerging.

"We are heading for a compromise," the Italian prime minister told reporters on the margins of an EU summit in Brussels. "Italy is on the way to getting all it wants."

Diplomatic and EU sources had earlier said that French President Nicolas Sarkozy, the summit's host, had made a series of compromises designed to buy off opposition by countries including Italy, Poland and Hungary.

Although Britain and others had voiced concerns that too many concessions had been made, hopes grew that an agreement would be reached before the end of the two-day summit on Friday.

"A consensus is starting to emerge and an agreement is quite probable tomorrow," one EU official said on the condition of the anonymity.

The EU's so-called 20-20-20 plan sets three targets for 2020: a 20 percent cut in greenhouse gas emissions, a 20 percent cut in energy consumed and 20 percent use of renewable energy.

But several nations, led by Germany, Italy and Poland, have opposed the plans to achieve those targets, fearing the effect on their industries and jobs in a time of recession.