Chancellor Angela Merkel advocates bilateral, trilateral deals over migrants to EU

Macron won the German Chancellor's backing for a'real budget with annual revenues and spending with its own governance structure to bolster the 19-member currency bloc

According to the public news agency, ANSA, investors are said to be concerned about tension between Italy and the EU ahead of an informal meeting of several EU States on migration on Sunday.

The 16 heads of government and state are responding to alarm about growing rifts not only among the EU's 28 members but also within the German government itself, the bloc's most powerful.

About half of Germans support Merkel's policies: for her resignation in favor, 43 percent of respondents.

Italian Prime Minister Giuseppe Conte said on Thursday a draft European Union accord on migration had been withdrawn after he clashed with German Chancellor Angela Merkel over an issue that is splitting Europe.

Merkel, after allowing more than one million asylum seekers into Germany since 2015, faced a strong domestic backlash that has now turned into a government crisis.

A week ago, Spain took in 630 migrants from the French aid ship Aquarius after Malta and Italy, which were closer, refused to grant the ship access to their ports.

Italian authorities appeared to relent on Thursday after at first refusing to accept 226 migrants on board a German rescue ship, saying later in the day they would take them in but impound the vessel.

Plans for the emergency meeting, before a full European Union summit at the end of next week, were thrown into chaos on Thursday when Italy's new prime minister declared that a draft accord on migration had been withdrawn because of a clash with Merkel.

With a populist backlash over her initial open-door policy toward asylum-seekers, Merkel emerged weakened in recent elections.

The premier said on Facebook Thursday that Merkel had called because she was anxious that he might not attend the meeting.

Unless all European Union states agree at their looming June 28-29 summit to share out asylum seekers more evenly, Seehofer has threatened to introduce an entry ban on the German border for all those who try to get into the country but have already registered for asylum elsewhere.

With such reform elusive, Merkel is now pushing for bilateral, trilateral and multilateral deals.

"I am working for the coalition to do its tasks as set out in the coalition agreement", Merkel said, speaking alongside Lebanese Prime Minister Saad Hariri.

The prime ministers of Denmark, Belgium and Luxembourg also backed the idea of outsourcing the effort to tame migration, although they emphasized the need to respect worldwide law.

Italy has proposed these asylum-processing "hotspots" be located in the migrants' countries of origin or transit.

The leaders are also to discuss proposals for reception centres outside the bloc to separate genuine war refugees from economic migrants, who can be sent home.

Failure to agree on how to deal with the challenge of migration threatens the EU's border-free travel area, one of the biggest accomplishments in the bloc's 60-year history.

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