European ministers were at loggerheads over reform to the Common Agricultural Policy (CAP).
France holds the key to whether agriculture ministers meeting in Luxembourg can break the deadlock after ongoing negotiations. France is the biggest beneficiary of the CAP and is resisting changes that would end extremely generous subsidies.
French president Jacques Chirac strongly opposes reform, last week he ordered a suspension of talks and tried to raise the issue at a summit of EU leaders.
Development experts say Europe and the US must scale back subsidies or farming in the Third World will not be able to develop.
Franz Fischler, the European agriculture commissioner, says the proposed reforms are vital. Central to the measures are efforts to break the link between farm subsidies and the production of food. This would slash the stockpiles that are dumped cheaply in the Third World, undercutting domestic produce. Fischler's plans are much weaker than those he presented last year.
French sources have suggested further concessions would be needed for a deal as Paris wants to retain the present level of market intervention.