BERLIN: Germany urged the European Union to consider imposing financial penalties on states that refuse to take in their share of asylum seekers as the influx of refugees showed no sign of abating on Tuesday despite new border controls.

In a veiled threat that drew an angry response from eastern European states that have resisted EU plans to share out refugees Interior Minister Thomas de Maiziere said these were the same countries that received funding from the bloc.

Facing opposition from ex-Communist states EU ministers failed on Monday to break a deadlock over sharing responsibility for accepting some of the hundreds of thousands who have sought asylum in Europe.

De Maiziere said the EU was still some way from agreeing long-term quotas for refugees. "So I think we must talk about ways of exerting pressure" he told ZDF television adding that some of the countries that opposed quotas were the beneficiaries of structural funds - EU money allocated to help poorer regions catch up with wealthier areas.

A senior Czech official said threats to cut such funding had no basis in law. "German threats that central Europe will be punished by cutting cohesion funds are empty but very damaging to all" Tomá Prouza the Czech State Secretary for the EU said.

Slovakia insisted it would never support mandatory refugee quotas. In response to Germany's proposal Prime Minister Robert Fico said that never before had a country been punished for having a different opinion. Taking such a step would mean "the end of the EU" he said.

De Maiziere stuck to his forecast that 800000 refugees would arrive in Germany this year despite some politicians saying there could be as many as one million.

BORDER CONTROLS

After opening its doors to refugees from Syria's civil war Germany temporarily reimposed border controls at the weekend causing other countries along the refugees' march northwards through Europe to do the same and casting doubt on the EU's Schengen system of passport-free travel within the bloc.

Vice Chancellor Sigmar Gabriel said Germany's ability to take in refugees would end at some point. "I think there is no alternative to setting up hotspots in Greece Hungary and Italy where asylum processes can be decided and then distribution can be worked out" he said

Police said more than 4500 asylum seekers reached Germany by train on Monday despite new controls at the border with Austria. They brought the number of asylum seekers who have entered Germany by train this month to nearly 92000.

Arrivals in Germany seemed certain to rise after nearly 22000 reached neighbouring Austria on Monday and Tuesday. Officials there said 350 refugees had arrived in the city of Salzburg within an hour and a train was due to take more across the German border to Munich.

Women and small children were being allowed to board the train. Some young men appeared angry at the decision.

"For now the situation is under control but that can change within minutes" said Johannes Greifeneder spokesman for the city of Salzburg.

German government spokesmen have said that temporary border controls do not mean the frontiers are closed but will allow refugees to be processed in a more orderly fashion.

The border measures were however greeted with concern by German industry. The VDMA engineering federation feared there could be "negative effects on the EU internal market and the European Union overall".

The refugee crisis has boosted support for the Alternative for Germany (AfD) a right-wing party that backs a tough line on immigration to its highest level in nearly four months an opinion poll showed on Tuesday.

The INSA poll for Bild newspaper showed support for the AfD at 5.5 percent while support for Chancellor Angela Merkel's conservative bloc slipped 1.5 points to 40 percent still the strongest party by far but its lowest reading since late June.

Reuters