Brussels - The European Union's executive was set on Tuesday to give France until 2012 to bring its government deficit back in line with EU rules, diplomats in Brussels said Monday.

At a meeting in the French city of Strasbourg, the European Commission is to debate what to do to with euro users France, Greece, Ireland and Spain, after their government debts broke the EU's limit of 3 per cent of gross domestic product (GDP) in 2008.

Brussels - European Union and Ukrainian leaders on Monday pledged to work together on reforming Ukraine's gas transit system as Russia accused the two sides of working behind its back.

"It's our firm intention to modernize our gas transit system, to ensure it complies with all European standards. We want the consumer to know where the supplies are at all times and how (they) are being spread," Ukraine's President Viktor Yushchenko told a conference on the modernization of his country's gas transit system in Brussels.

Brussels - The European Union and Ukraine on Monday were set to approve a programme of political reforms which should encourage European players to invest in physical repairs to the former-Soviet state's giant gas network.

Brussels - Jose Manuel Barroso moved closer Friday to obtaining a second mandate as head of the European Union executive in Brussels after he received the key backing of French President Nicolas Sarkozy at a summit of EU leaders.

"I have always liked the way he works, and I have not changed my opinion ... I will not be ashamed to support him," French President Nicolas Sarkozy said.

Sarkozy had previously appeared less enthusiastic about backing Barroso, a conservative and former prime minister of Portugal.

Brussels - The European Union is to offer the International Monetary Fund (IMF) 75 billion euros (101.5 billion dollars) in extra loans, the holder of the bloc's rotating presidency said Friday.

The sum of "75 billion euros is the figure for a voluntary loan to the IMF to enable it to react better in the context of the crisis," Czech Prime Minister Mirek Topolanek told journalists in Brussels after a summit with EU leaders.

Brussels - In a diplomatic victory for Spain, European Union leaders Friday were set to back its invitation to the Financial Stability Forum (FSF) of top central banks, just weeks after six middle-weight EU members accused the country of "gate-crashing."

A draft statement prepared for a summit of EU leaders and seen by Deutsche Presse-Agentur dpa welcomed the expansion of the FSF to "all members of the Group of 20 (G20) leading economies, Spain and the European Commission," the EU's executive.