By Francesco Guarascio BRUSSELS (Reuters) - The European Commission is set to propose next week that 40,000 asylum seekers who have arrived by boat in Italy and Greece should be relocated across the continent in response to what it considers an emergency situation in both countries. The proposal, revealed to Reuters by an EU source familiar with a draft, follows plans announced last week for the European Union to take in 20,000 asylum-seekers currently living outside the bloc. The Commission has also set a quota system, based on a country's size and economic health, for those resettled migrants as well as for those relocated within the EU.