Herman Van Rompuy, who as president of the European Council, will chair the summit
Although the eyes of Europe are on Athens, the two-day summit of European heads of government that starts today in Brussels may have little to add to the ongoing debate over what to do about Greece’s debt crisis.
That’s because most of the tough decisions left – particularly how to involve private bondholders in shouldering some of the cost of another Greek bail-out – have been put in the hands of finance ministers, who must hash out their differences before an emergency meeting July 3.
Economic issues will hardly be off the agenda, however, especially tonight. In his letter to European leaders, Herman Van Rompuy, president of the European Council, said tonight’s dinner will be focused on the economy – though largely issues that are not particularly controversial or have been decided by finance ministers. Read more
Day one of the European Union summit finally broke up after midnight Friday, with leaders finalising the structure of a new eurozone bail-out system that will go into place in 2013 and some tough language on Libya, including the promise to push for more sanctions against Libyan oil and gas companies.
Most everything else in the much-anticipated “grand bargain” to shore up the eurozone was decided before the summit, so the rest of the conclusions on economic and fiscal issues were widely reported and expected.
One thing worth reflecting on, however, is the fact that what was once one of the most contentious proposals to reform the EU’s economic governance – new budget rules that allow the EU to fine wayward member states – was agreed to without much controversy. That may require Brussels elites to reconsider the Hungarian presidency. Read more
As we’ve been reporting for the last couple of days, many of the fiscal measures that we once thought had been agreed for the two-day summit are unravelling, thanks in part to Finland’s objections to finalising an increase in the eurozone’s €440bn bail-out fund and Germany’s sudden objection to the structure of the €500bn fund that will replace it in 2013. Read more
UPDATE: The demonstrations are already turning nasty. Near the Belgian prime minister’s office, protesters are throwing rocks at riot police, who have opened water cannons on them.
It’s summit day (again!) in Brussels, and for Europe’s presidents and prime minsters gathering this afternoon, the unexpected collapse of the Portuguese government and the ongoing infighting over the Libyan campaign is likely to dominate deliberations behind closed doors.
But those of us without the benefit of a security detail and Belgian motorcycle outriders will have to deal with something far more onerous: thousands of Belgian demonstrators who are expected to clog Brussels’ city centre to protest European austerity measures and the failure of Belgian political leaders to form a government.
A quick morning wander through the city’s EU quarter reveals Belgian security forces armed to the teeth, complete with gas masks, body armour, riot helmets and plexiglass shields. Helicopters buzz overhead. Two Belgian army soldiers were even spotted wandering through the atrium of Justis Lipsius, the EU building where the summit is held. Read more
As he entered today’s EU summit, Nicolas Sarkozy, the French president, made his first public comments about his unexpected plan for for “defensive” air-strikes against forces loyal to Libyan leader Muammar Gaddafi, saying they should be used in the event Gaddafi uses chemical weapons or unleashes airpower against unarmed demonstrators.
“The French and the English have said that we are open, if the United Nations wants it, and if the Arab League accepts it, and if the Libyan authorities that we want to be recognised ask for it, to have targeted defensive operations in the sole eventuality that Gaddafi would use chemical weapons or use his warplanes to target non-violent demonstrators,” he told reporters. Read more
Today’s back-to-back European Union summits in Brussels kick off with a discussion on Libya, and it’s sure to be dominated by Nicolas Sarkozy’s unexpected decision to recognise the opposition Libyan National Council as the legitimate representatives of the Libyan people.
Officials at both Nato (where defence ministers are meeting) and the European Union (where European foreign ministers lunched ahead of today’s heads-of-government summit) said Sarkozy’s initiative was not hugely popular; one foreign minister I talked to said it was 26 vs 1 during the EU session. There are widespread concerns about who, exactly, the west is embracing, since intelligence on the opposition’s leadership remails pretty thin. Read more
For those, like the Brussels Blog, who have been following every twist and turn of the saga over Hungary’s carpet in the European Union building that hosts major summits, here’s another twist: the carpet has been covered up.
For those not following the drama so closely, a quick summary: To mark their turn at the EU’s six-month rotating presidency, Hungary laid down the carpet with symbols of the country’s history – including a map of Hungary from 1848, when parts of current-day Slovakia and Romania were within Hungarian borders. It has added to concerns about the nationalist tendencies of the government in Budapest.
Suffice it to say, the Slovaks and Romanians haven’t been amused.
But for today’s heads of government summit in Brussels, the first during the Hungarian presidency, the carpet has been covered by a giant Hungarian-green rug, raising questions of whether Budapest has backed down in the face of criticism.
We’ve been told, however, that no such climb-down is in the works. Read more
As European leaders gather in Brussels for a summit meeting nominally dedicated – for the first time – to energy policy, one uninvited guest is looking on with some dismay: Russia.
High on the agenda is energy security. Which is a polite way of saying that European leaders are discussing how the bloc can break its dependency on Russian gas. In some parts of the EU – notably among the new member states of central and eastern Europe – that policy goal has become an obsession.
“We are totally dependent,” said one Lithuanian diplomat. “Whatever Gazprom says, we pay.” Read more
Friday’s summit of European heads of government has long been signposted as one of European Council president Herman Van Rompuy’s new interim conclaves to deal with a policy issue of crucial importance to Europe, in this case energy security.
But as many diplomats predicted, energy is increasingly getting drowned out by other, more pressing demands.
First, José Manuel Barroso, the European Commission president, called on the summit to be used to hash out an overhaul of the eurozone’s €440bn sovereign debt bail-out fund so it’s able to more flexibly deal with bond market assaults on struggling “peripheral” economies.
Although that won’t happen, Van Rompuy has agreed to turn over the summit’s traditional working lunch to the eurozone crisis, and Angela Merkel, the German chancellor, has decided to use the opportunity to float a new plan for greater coordination in economic and fiscal policies among eurozone countries.
Now, it seems, the afternoon is being taken over by yet another crisis: Egypt. Read more
During his normal mid-summit breakfast with reporters, José Manuel Barroso, the president of the European Commission, the EU’s executive branch, was in a feisty mood, despite the late session Thursday night.
Barroso gave an overview of the debate over treaty changes and a summary of what he hopes will be a strong statement in support of the euro today.
But his most pointed comments were aimed at reports of a letter being circulated by Britain and other member states attempting to set limits to the seven-year budget framework, which starts in 2014. Read more