EU leaders meet in Brussels to discuss growth

Written By Unknown on Kamis, 14 Maret 2013 | 22.40

Taoiseach Enda Kenny is in Brussels this morning for a two-day EU leaders summit focused on reviewing economic policy and promoting jobs and growth.

The summit is not viewed as a key meeting for the single currency, unlike previous summits.

One EU diplomat has remarked that a "bit of boring" is not viewed in Brussels as a bad thing.

However, given record unemployment levels confirmed by EU statistical agency Eurostat, EU leaders will be keen to show they are adopting economic policies which will boost jobs and growth.

A phrase in the EU leaders' draft conclusions, "the necessity of differentiated growth-friendly fiscal consolidation", is proving controversial.

Germany and Nordic countries argue that reducing government deficits must remain the priority, while others, such as France, say stimulus measures are required to drive recovery.

The question for this EU summit is how to strike a compromise.

Meanwhile, talks between Greece and its international creditors over the release of its next tranche of bailout funds have been suspended for two weeks.

Officials from the European Commission, European Central Bank and International Monetary Fund are to fly out of Athens today having failed to reach a deal with the Greek government on further reforms.

The two sides remain at odds over the speed of state job cuts and plans to address mounting tax payment arrears.

Despite the apparent impasse in the discussions, Greek Finance Minister Yannis Stournaras has insisted that the two sides are edging towards a deal and that Greece's next loan tranche of €2.8bn, due this month, is not in danger.


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