LONDON — New restrictions that would prevent European Union funding being used to extract stem cells from surplus human embryos were criticized yesterday by the Royal Society, Britain’s academy of sciences.

The European Union agreed yesterday to continue funding contentious medical research using human embryonic stem cells, which are thought to have the potential to help treat a wide range of diseases, after a coalition of countries led by Germany failed to block money for new experiments.

A deal was reached after a carefully worded commitment by the European Commission not to directly fund projects for which human embryos would be killed. But science ministers said money would still be available for experiments that used existing lines of embryonic stem cells.

“We are glad that the European Council of Ministers has been able to reach an agreement by a ‘qualified majority’ on the E.U. research budget,” a Royal Society spokesman said. “However, it does appear that the council has agreed that E.U. funding can be used for studies on human embryonic stem cells as long as this research does not itself involve the destruction of human embryos. It remains to be seen what impact these limitations will have on research given that they impose greater restrictions than currently exist for E.U. research funding.”

A total of $67 billion is dedicated to the entire E.U. scientific research budget from 2007–13. But the principle of using the stem cells divided the 25 E.U. member states sharply on strict moral and ethical grounds.While the majority of the 25-nation bloc, including Britain, France, and Spain, argued passionately in favor of the research, Germany, along with a coalition of mainly Catholic countries, argued vehemently against.

Though it is much more restrictive than what is allowed in Britain, the move puts the European Union at odds with America’s position, just days after President Bush blocked a bill that would have lifted a ban on American federal funding for embryonic stem cell research.