WRAPUP 8-EU nears climate, stimulus deals

* Italy, Poland see EU climate deal in offing

* Ireland wins concessions to allow EU vote re-run

* Draft climate proposals ease burden on industry

By Paulo Biondi and David Brunnstrom

BRUSSELS, Dec 11 (Reuters) - European leaders moved towards agreement on a multi-billion dollar programme to tackle economic recession and a climate change plan amended to limit impact on struggling industries.

Green groups warned that the European Union's credibility as a force in tackling climate change would be endangered if it accepted too many changes to a plan to cut carbon dioxide emissions by 20 percent by 2020.

One British group said compromises in EU climate policy, which will be key to world talks next year to produce a successor to the Kyoto pact on climate change, amounted to a 'meltdown'.

Italian Prime Minister Silvio Berlusconi, who has threatened to veto a deal without concessions to protect key industries, emerged from the first day of a two-day EU summit, declaring: "We are heading towards a compromise...We are getting what we want."

Poland, which had demanded concessions on its heavily polluting coal-based power industry, also registered agreement.

"The prime minister (Donald Tusk) achieved everything he wanted in negotiations on the climate package," an official told Reuters. "The deal is flexible, allowing for the modernisation of the Polish power sector.' [ID:nLB662446]

German Finance Minister Peer Steinbrueck highlighted tensions underlying the summit with an attack on British Prime Minister Gordon Brown who, he suggested, was "tossing around billions" to fend off a deep recession.

But German Chancellor Angela Merkel, who opposes heavy spending for fear it could lead to escalating budget deficits, said she was keen to seal a 200 billion euro ($260 billion) stimulus package, amounting to some 1.5 percent of GDP.

Belgian Prime Minister Yves Leterme said leaders had reached an outline deal on a stimulus package equivalent to the projected 1.5 percent of the bloc's gross domestic product.

Luxembourg Prime Minister Jean-Claude Juncker warned against dilution of climate measures in the drive to revive commerce.

"The economic crisis will pass, the climate crisis will stay. We have to do something," he told reporters.

Finnish Foreign Minister Alexander Stubb said Friday would bring a 'historic decision' on energy and climate change.