The European Commission backed guidelines today to regulate the use of embryos in EU-funded research, hoping to heal divisions between Catholic states and scientists.
The Vatican, Ireland, Spain, Portugal, Austria and Italy and also Germany oppose embryo stem cell research on ethical grounds. Scientists say it could yield cures for Alzheimer's and Parkinson's disease.
Stem cells are the body's "master cells", capable of growing into other types of cells. One way to obtain them is by therapeutic cloning: creating embryos whose stem cells can then be detached.
The Catholic church insists that embryos are not mere clumps of cells but represent human life. By removing stem cells, the embryo is destroyed.
Under the draft rules, EU scientists would only receive funding from Brussels if they use stored or frozen embryos left over from fertility treatment and created before June 27th, 2002 - the date when the EU agreed its 2003-06 research programme.
"By setting strict ethical rules... for such funding, the EU contributes in a responsible way to advancing this science for the benefit of patients across the world, while at the same time ensuring that it takes place within a clear ethical framework," EU Research Commissioner Philippe Busquin said in a statement.
A maximum of €2.2 billion is available in EU funds. To date, Britain is the only EU state to embrace the technology.
The Commission's draft guidelines need the approval of the European Parliament and a majority of EU member states, whose research ministers will debate the proposal in November.
Irish MEP Rosemary Scallon said: "Europe must reject this Commission proposal which seeks to fund research using unborn human beings, whether that is as frozen embryos or as aborted babies."
Biotech companies said they were pleased with the Commission plan. "It will encourage development in this field across the EU," said the BioIndustry Association in a statement