Wide-ranging talks pave way for European summit

European leaders are gathering on Thursday and Friday for discussions on a set of key issues ranging from the future relationship between the United Kingdom and the European Union, economic sanctions over Russia and the United States' decision to move their Israeli embassy to Jerusalem.

At the two-day meeting, the leaders will also consider setting up a European Monetary Fund, assign a European minister for finance and introduce other measures to beef up the Economic and Monetary Union to cope with potential external risks, though the EU is at its strongest economically in a decade.

But the leaders will not achieve conclusions at the summit and the concrete decisions on the economic issues will be made in June when European leaders meet, said European Council President Donald Tusk when he announced the agenda of the meeting.

"The improved economic situation provides an opportunity to discuss the challenges ahead and the ways to tackle future crises. I want to have an open discussion on the Economic and Monetary Union and the Banking Union," Tusk said.

Guntram Wolff, director of Bruegel, a leading economic think tank in Brussels, said fiscal policymaking in the euro area will remain a difficult balancing act between national politics and European interests.

"I propose that the Eurogroup should be developed into a Eurosystem of fiscal policy as the center of euroarea fiscal governance," Wolff was cited in a policy briefing.

"The Eurogroup (now consisting of 19 countries), should have a permanent, full-time president, with a mandate to represent the interests of the whole euro area, and who will report regularly to the European Parliament."

The eurozone issue will be discussed on Friday without the attendance of the UK.

Tusk also said that EU leaders are deciding whether to move Brexit negotiations with the UK to the next phase.

"So far, I think we have a satisfactory result on most issues. ... If you agree, we are ready to move to the second phase, which will expand discussions to cover transition and the framework for the future relationship," Tusk said in a letter before the meeting.

At Thursday's talks, which started late in the evening Beijing time and were attended by British Prime Minister Theresa May, the discussions focused on the bloc's increased defense and security measures and migration challenges.

Tusk said German Chancellor Angela Merkel and French President Emmanuel Macron were scheduled to report on the implementation of the Minsk Agreements, with a view to renewing economic sanctions vis-a-vis Russia since 2014, which many European farmers suffered and have asked to be lifted.

Belgian Prime Minister Charles Michel asked European leaders to strengthen their consensus over Washington' decision to move their embassy to Jerusalem.

Earlier this week, the bloc's High Representative of foreign affairs Federica Mogherini told visiting Prime Minister of Israel Benjamin Netanyahu that international agreement, "with Jerusalem as the capital of both the State of Israel and the State of Palestine along the 1967 line", should be respected.

fujing@chinadaily.com.cn

(China Daily 12/15/2017 page11)