German Chancellor Angela Merkel said Friday that she is unsure if European leaders will be able to agree on an economic recovery package amid the coronavirus pandemic. Merkel made the comments while at a summit with other European leaders in Brussels.

“The differences are still very large and so I can’t predict that we will achieve a result this time,” Merkel said. “It would be desirable, but we also have to be realistic. And it really does take a great deal of willingness to compromise on the part of everyone if we are to achieve something that is good for Europe. In this respect, I expect very difficult negotiations.”

Spain Prime Minister Pedro Sanchez, along with Italian leader Giuseppe Conte, have pushed for a substantial economic recovery plan. Spain and Italy have been hard hit by the pandemic, as the virus has devastated the tourism industries of these southern European countries.

France and Germany have backed a 750 billion euro ($857 billion) recovery package that would offer grants and loans to hard-hit European industries and regions.

Other countries, such as Netherlands, Austria, Sweden and Denmark, have been reluctant to back a large spending package. These “frugal four” nations would prefer that aid be given only in the form of loans, not grants.

According to economic forecasts put out by the European Commission in May, the European Union’s economy will contract by 7.4% in 2020, the worst economic shock since the Great Depression in the 1930s.

Coronavirus Germany