BRUSSELS - A new proposal on the EU’s coronavirus economic recovery fund is “a serious step in the right direction”, a Dutch diplomat said after demands from The Netherlands left the EU struggling to narrow differences over the proposed mass stimulus.

“In the end this is a package and there are many more issues to solve. But the proposals on governance as put forward by (European Council President Charles) Michel is a serious step in the right direction. Many issues remain and whether we get there will depend on the next 24 hours,” the diplomat said.