The toll of unemployed people in EU reached 23 million. It is also believed that there would be big cuts in budget which can badly affect training and other enterprise. European commission said that the cuts should be smart enough and rightly targeted to allow future growth.
EU leaders’ summit will be held today in Brussels. The aim of this summit is to being in coordination among the budgets of 17 countries. UK chose to stay out of discussions and may take part as mere observer.
Because of the split in ruling party, the Czech Republic may join the treaty later. Republic of Ireland decided to go for a referendum first. Germany is planning to incorporate other countries such as Poland, Sweden and Denmark.
However, Poland is pressing hard for complete involvement of many other countries like it, which are planning to join euro. As per draft treaty, the summit will be held twice a year, and extension of invitation to non-euro countries is completely at the discretion of president.
During the summit, Greece debt crisis will remain much bigger point of concern. The European Commission is confident about reaching an agreement. Greece asked the private bond holders to forgive 50%. It is also believed that Greece may face scarcity of money by mid of February. 130 billion euro bailout for Greece from IMF is completely dependent on this deal.
The summit is also likely to approve the launch of European Stability Mechanism (ESM) with 500 billion euro bailout fund. The present European Financial Stability Facility (EFSF) will terminate next year. The EU is preparing to install a more effective firewall in order to resist influence of Greece crisis. There have been several requests to Europeans Central Bank to increase the firewall to one trillion euros. EU leaders are also expected to discuss the unemployment issue also.