By Francesco Guarascio LUXEMBOURG (Reuters) - The European Union failed on Thursday to reach a deal to resolve a migration crisis in the Mediterranean, and instead set a deadline of July 20 to reach an agreement on how to redistribute 40,000 asylum seekers currently in Italy and Greece. "We made progress but we are not there yet," Dimitris Avramopoulos, the European Commissioner responsible for migration, told reporters after a meeting of European interior ministers in Luxembourg. The European Commission, the EU's executive arm, proposed in May to relocate 60,000 refugees over the next two years.