HIGHLIGHTS-EU leaders squabble over bloc's budget for 2021-27

European Union leaders start two days of tough talks on Thursday on a joint seven-year budget from 2021 and must work out how to fill a 75 billion euro ($81 billion) hole left by Britain's departure just as they face costly climate, migration and development challenges. LITHUANIAN PRESIDENT GITANAS NAUSEDA

"I slept well so... and am prepared for a long night spent here." "The interest of our country is to have sufficient funding on cohesion."

"We will be very consistent on convergence of direct payments to farmers." EUROPEAN COUNCIL PRESIDENT CHARLES MICHEL

"There are many interests, there are many concerns. They are all legitimate but I'm convinced it's possible to make progress in the next hours and the next days. Everything is on the table to be able to decide." ESTONIAN PRESIDENT JURI RATAS

"I think these negotiations today and tomorrow, an maybe over the weekend, will be very difficult." "We have two priorities - direct payments to support our farmers and Via Baltica."

POLISH PM MATEUSZ MORAWIECKI "There is no agreement to revolutionise the structure of the budget and at the same time lower the overall size. We want to considerably improve Poland's position in several fields."