Brussels - European Union foreign ministers hit a deadlock Monday over a plan to spend 5 billion euros (6.5 billion dollars) in community funds on energy and high-tech projects to boost the economy, diplomatic sources said.

The failure to agree sets up a political flashpoint just days before EU leaders are set to meet in Brussels for a summit aimed at lifting Europe out of economic crisis.

The EU's executive, the European Commission, in November proposed that the bloc should spend 5 billion euros in "unspent" EU funds on better internet access and energy connections across the bloc, as part of a package of measures aimed at warding off economic crisis.

But the proposal quickly became mired in controversy as member states disagreed over the question of where the money should come from and exactly which projects in which countries should receive it.

Germany, the biggest country in the EU and the biggest contributor to its budget, was especially critical of the plan.

On Monday, the bloc's foreign ministers were tasked with discussing the proposal ahead of the summit. But diplomats close to the talks said ministers were unable to reconcile the demands of different member states.

The Czech government, which currently holds the EU's rotating presidency, is now expected to draw up a new list of projects and proposals for how to finance them. Diplomats said that they hope for a deal before the summit. (dpa)