BRUSSELS, Dec 5 Reuters European Union governments look increasingly unlikely to reach a deal on new EU fiscal rules this year because their differences on the pace needed to consolidate public finances are too big, officials said.

On Friday EU finance ministers are to discuss changes to the rules, which underpin the value of the euro and are closely watched by financial markets. The aim is to agree a joint position, called a general approach, that would then be negotiated with the European Parliament early in 2024.

I don39;t think a general approach is possible before the end of the year, said one senior euro zone official involved in the talks.

We are too far apart on many issues, and some have not even been discussed, said the official, adding that there was little time left given the need to prepare next week39;s European summit on Ukraine and talks on the EU39;s common budget.

A deal on Friday is highly unlikely, a second official close to the talks said.

But officials said that even if there is no complete agreement, discussions based on a new compromise proposal by the Spanish presidency on Thursday evening and on Friday were likely to yield a convergence of positions, called a landing zone.

The rules have been suspended since 2020 but are to be reinstated from 2024. EU governments want to update them to reflect the new, postpandemic realities of higher public debt and the need for large investment to prevent climate change.

Officials said a delay in a…