Brussels - German Chancellor Angela Merkel on Thursday threatened to scupper plans to use European Union funds to stimulate the economy, insisting the money should only be used to finance projects capable of delivering immediate results.

"Any additional measures should only be taken if a substantial part of these measures can be implemented very quickly. Otherwise, they would not help tackle the crisis," Merkel said as she arrived for an EU summit in Brussels.

In November, the European Commission proposed spending 5 billion euros (6.9 billion dollars) in what it called "unused" community funds on broadband internet, green projects and energy security. The 5 billions are part of an EU 400-billion-euro economic recovery package intended to mitigate the impact of the bloc's worst recession in 60 years.

But member states have been squabbling over the proposal ever since, with the biggest contributor to the EU budget arguing that any "unused" money should be returned to member states.

While it has received assurances that money left over from the EU's 2008 budget will not be involved, Germany is now against the revised list of projects drawn up by the bloc's Czech presidency.

German anger is vented in particular at those countries in South-Eastern Europe that insist some of the money be spent on the Nabucco pipeline project.

Intended to carry gas from Central Asia to Europe, bypassing Russia, the 7.9-billion-euro project is not expected to be completed before 2013.

Experts note that Germany is keen to nurture its close ties with Russia, which provides most of the bloc's gas imports through Ukraine.

The latest compromise text, proposed by the Czech presidency of the EU and seen by Deutsche Presse-Agentur dpa, makes it clear that any margins from the 2008 budget are excluded, with the money coming from the 2009 and 2010 budgets instead.

The text earmarks 2.3 billion euros for gas and electricity infrastructure projects. This total includes 300 million euros for the so-called Southern Gas Corridor, which includes Nabucco.

Some 505 million euros are to be spent on offshore wind energy projects, 1.2 billion for carbon capture and storage, and a further 1 billion for broadband internet and agriculture.

The compromise text makes it clear that "substantial capital expenditure" on eligible projects should occur "by the end of 2010."

Speaking ahead of Thursday and Friday's summit, the Czech presidency warned that failure to reach an agreement would be "a failure for the entire EU."

Sources said Germany may be persuaded to drop its resistance by an EU offer to help Deutsche Telekom, which is investing heavily on a new internet broadband network. (dpa)