Eastern Europeans aren't keen on the shortlist, fearing it will be skewed against them | Philippe Desmazes/AFP via Getty Images EU can’t decide how to relocate agencies marooned by Brexit The first spoils of Brexit splits remaining EU countries.

EU ministers and diplomats failed to reach agreement Tuesday on guidelines for relocating two agencies that will leave the U.K. after Brexit, with rivalry between Eastern European nations and wealthier member countries preventing them from resolving the dispute.

That means European affairs ministers will now have to defer the final decision on where to relocate the European Medicines Agency and the European Banking Authority — which must leave London because of Brexit — to EU leaders who meet in Brussels on Thursday and Friday. It marks the third time an EU institution has had to pass the agencies decision onto someone else.

The Eastern Europeans say it's their turn to host an EU agency, while wealthier countries stressed the importance of business continuity for the agencies. "In the end it will be about finding a balance," said one diplomat briefed on ministers' talks in Luxembourg.

At their summit, national leaders will have to try to endorse a definitive list of criteria proposed by the European Commission and the European Council and deciding whether the Commission should create a shortlist of countries.

Eastern Europeans aren't keen on the shortlist, fearing it will be skewed against them, and have so far succeeded in keeping it out of the text.

“In the Commission, the big Western countries have more influence than we do,” complained one senior Central European diplomat.

Richer countries tend to favor a shortlist based on six criteria proposed by the Commission and the Council. The requirements include assurances the agency can be set up in the new country and begin its functions at the date of the U.K.'s withdrawal from the EU; accessibility of the new location; adequate education facilities for the children of the agencies' staff; and appropriate access to the labor market for their spouses. Ensuring business continuity for the agencies and geographical spread are also on the list.

The agencies are among the first spoils of Brexit, splitting the remaining 27 EU countries along the traditional East-West divide. So far about 15 countries have applied to host the EMA, which has almost 900 staff. About a half of that number of countries have applied for the EBA, which has almost 200 employees. The Commission and the Council proposed that member countries would then vote on the different host candidates, who must formally apply by July 31. The General Affairs Council would make a final decision on new host countries in October.

But Italy and the Netherlands, backed by Spain, disagreed on this process at Tuesday's meeting. They want the Commission to play a bigger role, going beyond proposing criteria to craft a shortlist, three diplomats said.

Sweden and Greece “are ready to back us,” an Italian diplomat involved in the talks said. Rome wants EU leaders to make the final decision, not the General Affairs Council.

“In London they will be opening bottles,” said one senior EU diplomat about the EU27's failure to make a decision.