EU leaders meet this WEEK

BRUSSELS – EU leaders gather in Brussels for their last summit of the year with a discussion agenda that includes economic integration, jobs and defence.

Merkel is due to visit Hollande in Paris on Wednesday (Photo: consiliumPre-prepared conclusions for the summit show member states are willing to proceed with Berlin’s idea of contractual arrangements – whereby member states undertake to carry out “home grown” economic reforms in return for a loan, grant or guarantee.

The part on banking union – seen as key to ensuring the future stability of the eurozone – will depend on what finance ministers manage to hammer out during their meeting earlier in week. Ministers loosely agreed a framework on how ailing banks should be wound down and how a common fund would eventually be set up. However, there are concerns about its proposed intergovernmental nature and complex decision-making procedure.

Source: EU Observer