European Union leaders are divided over dealing with refugees and accepting migrants as a two-day meeting on migration began in Brussels on Thursday.

Members have not reached a deal over how to handle the flow of Europe-bound refugees and migrants, despite a significant drop in arrivals this year, diplomats said.

"As one member reserved their position on the entire conclusions, no conclusions have been agreed at this stage," the spokesman for European Council President Donald Tusk said in a statement. Diplomats said the country that was blocking was Italy.

Tusk and European Commission President Jean-Claude Juncker also cancelled a news conference scheduled for Thursday evening.

German Chancellor Angela Merkel warned today that the migration challenge could determine Europe's fate, hours ahead of a Brussels summit with EU leaders expected to clash over the way forward.

"Europe has many challenges but migration could end up determining Europe's destiny," she told German lawmakers, adding that the path that the EU chooses could decide if the bloc is viewed by others as a credible defender of the values it espouses. At home, she is under pressure to secure a bloc-wide deal to stem the flow of refugees and migrants or face the possible collapse of her government.

Several nations, including France, Hungary, have told reporters at the summit that they are open to bilateral agreements with Germany.

But by Thursday evening, Italy had vowed to block progress on any issue to pressure fellow members into action on migration. Leaders had hoped to pass joint statements on a range of issues and then come to an agreement on migration.

Prime Minister Giuseppe Conte, who heads Italy's month-old populist and anti-immigration government, said he would refuse to endorse the conclusions of the meeting in Brussels if fellow leaders fail to do more to help Italy.

"Italy does not need more words, but concrete actions," Conte told reporters as he arrived at the summit. "It's a possibility I hope not to consider, but if we reach that point, on my behalf we will not have shared conclusions."

Italy comes to the European Union gathering emboldened by the announcement that Conte will on July 30 visit U.S. President Donald Trump, who has hailed Rome's tough stance, and who himself blocked the conclusions of a recent G7 leaders meeting on trade.

EU President Donald Tusk, meanwhile, issued a fresh warning on the need for action on migration to stave off rising populism and authoritarianism.

"Some may think I am too tough in my proposals on migration, but trust me, if we don't agree on them, then you'll see some really tough proposals from some really tough guys," the former Polish premier added.

The leaders hope at the summit to approve work on migrant "disembarkation platforms" in countries outside Europe, most likely in Africa, according to a draft prepared by Tusk.

Tusk warned on the eve of the summit that "the stakes are very high and time is short." But there is no chance of agreement on a plan for mandatory "burden sharing" by moving refugees from frontline Mediterranean states like Italy and Greece to other countries.

The plan is strongly opposed by eastern European countries, particularly the authoritarian governments of Hungary and Poland. (With Agency inputs)

(The above story first appeared on LatestLY on Jun 29, 2018 06:58 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).