President Nicolas Sarkozy is keen to seal a deal, on the second and last day of an EU summit in Brussels, before France hands the bloc's rotating presidency over to the Czech Republic at the end of the month.

Sarkozy managed to satisfy reluctant Germany, Italy and Poland on Thursday, all of which said they were happy with the latest French plan and dropped their veto threats.

That left Hungary as the last EU nation with serious reservations on the scheme.

"I hope we are very close to a final success," said Polish Prime Minister Donald Tusk, arriving for the second day of talks.

Also on the summit menu were proposals for a 200 billion euro (260 billion dollar) economic stimulus plan for Europe and Ireland's plans for a second referendum on the EU's reforming Lisbon Treaty.

"There are still some discussions needed, but I am cautiously optimistic that we will reach a good agreement," said German Chancellor Angela Merkel.

The EU's so-called 20-20-20 plan sets three targets for 2020: a 20 percent cut in greenhouse gas emissions, a 20 percent cut in energy consumed and 20 percent use of renewable energy.

The EU is keen to be seen at the forefront of the battle against climate change, and wants to arrive at international climate change talks in Copenhagen next December with a model for the rest of the world.

"When it is unified, Europe sees ideas progress and can impose its values," said Sarkozy said on the first day of the summit.

United Nations Secretary General Ban Ki-moon, attending UN climate talks in Poznan, Poland, said the outcome of the two-day summit in Brussels holds "great consequences for the whole world."

"We look for leadership from the European Union. The decisions currently being made by European leaders in Brussels are (of) great consequences for the whole world," he said.

Europe is keen to see what Barack Obama will do once he enters office next month, after the US president-elect's pre-election comments that he would put climate change high on his agenda.

The EU is also hoping to get firm commitments from China, India and other nations and is willing to promise further cuts if a global climate deal can be struck.

"Intense negotiations" were taking place Friday between the French EU presidency, the Hungarian delegation and "other partners," notably Poland which is the unofficial advocate for eastern European member states, a Hungarian spokesman said.

In winning over much of the doubters, Paris agreed to several demands to limit the effects on industry, already reeling from the recessional headwinds.

This led environmentalists to complain that the climate deal was being sacrificed on the altar of economic expediency.

"We risk a lock-in in an expensive and polluting fossil-fuel economy," said Greenpeace Europe director Joris den Blanken.

"The public is ready, they want to reduce their energy costs and save the climate. Our leaders are probably waiting for Obama to do something."

Under the proposals western European nations will have to make up to cuts of up to 20 percent in their greenhouse gas emissions while the poorer eastern states will be allowed to increase emissions by up to 20 percent.

Budapest feels it is not being offered enough help from the richer nations under the "solidarity" part of the scheme.

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