The Taoiseach has said it would be a "worrying development" if EU leaders cannot agree on the €750bn COVID-19 recovery fund.
Negotiations in Brussels have entered a third day, with significant divisions remaining over the size of the package and the split between grants and loans.
Talks reached a deadlock yesterday as the "frugal" group of countries, led by the Netherlands, insist on cuts to the level of supports.
Earlier, German Chancellor Angela Merkel says it is possible no agreement will be reached today.
She said there is a "lot of goodwill" but also "many positions" meaning it's possible there'll be "no result" on a deal.
Taoiseach Micheál Martin said it remains to be seen if leaders can strike a deal.
He said: "I think it's fair to say significant differences remain."
The issues in contention included the size and division of the fund, as well as the rule of law, he said.
He added: "From our perspective, I think we've played a significant role here.
"We do believe a package is required that has impact in terms of responding to the economic disruption that COVID is causing across Europe because collectively Europe must recover from this."
Mr Martin said: "The absence of an agreement would be very negative in terms of the perception of Europe's capacity collectively to respond to a crisis that is unique, and is a 100-year event, and that would be a worrying development if that were to happen."
