30 January 2012, 14:04  EU leaders are due to approve a new intergovernmental treaty

EU leaders are due to approve the text of a new intergovernmental treaty at a summit in Brussels later today. The treaty will pave the way for deeper economic integration, with up to 26 member states making a commitment to stricter fiscal discipline. Taoiseach Enda Kenny will also make a presentation at the summit on the Government's plans to boost job creation in the small and medium sized business sector. Under pressure from voters, EU leaders have been anxious to switch the focus from austerity and on to jobs and growth. At today's summit, which was nearly derailed by a general strike called by Belgian unions, there will be talk of tackling youth unemployment, speeding up Europe's digital infrastructure and making better use of EU funds to generate employment. The Taoiseach has been asked to outline the Government's policy on the SME sector and he is expected to highlight the requirement that the state's covered banks meet targets of lending €3.5 billion each to the small and medium sized businesses, as well as reductions in PRSI and a number of soon to be announced jobs initiatives. EU leaders are also expected to approve the final text for new fiscal stability union, and the Government will then formally submit the text to the Attorney General to verify whether or not a referendum is required. Leaders will also agree sign off on the permanent EU bail-out fund, the European Stability Mechanism, which has been brought forward to enter into force in July. There are, however, still disagreements over the total size of the fund's firepower

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