Greece economy, migration top agenda in EU leaders’ summit

Greece’s economic woes and the issue of migration are expected to dominate a two-day summit of EU leaders starting in Brussels today.

Greece will take centre stage as the country’s Parliament struggles to approve a fresh package of austerity measures deemed crucial if the country is to receive added financial help from the EU and the International Monetary Fund to avoid a total collapse of its economy.

Upping the ante in preparation for today’s talks, European Commission president José Manuel Barroso made it clear that without an agreement on increased austerity measures there will be no further help from the EU.

“This is the moment of truth, where Greece has to demonstrate it is genuinely committed to the ambitious package of further fiscal measures and privatisations,” he said. “If Athens acts then Europe will deliver,” Mr Barroso said. Earlier this week, EU finance ministers put off payment of the €12 billion tranche of aid, the fifth under Greece’s existing bailout, until parliament approves the austerity plan. The IMF had previously said it would not contribute its €3 billion portion unless the eurozone pledged to continue to fund Greece through 2012.

A second bailout of between €100 billion to €120 billion is being worked out to ensure Greece can still pay its bills, although there are plans to rope in private investors to “voluntarily” share the cost of the loan.

Migration issues in the southern Mediterranean are also topping the leaders’ agenda with Home Affairs Commissioner Cecilia Malmström pushing for a final agreement on the creation of a Common European Asylum System by the end of next year.

Despite various initiatives and previous commitments by member states, the dossier is almost at a standstill as many member states oppose further integration in this area.

In a statement issued yesterday, Ms Malmström made a last-minute appeal to EU leaders. She urged them to “confirm that we need a long-lasting and well-functioning relationship with southern Mediterranean countries on mobility and security; and that we are serious when we say we are open to helping them on the path to democracy and economic progress”.

The objective of creating common asylum rules across the EU has been a common goal for more than a decade. Negotiations have become deadlocked between the European Parliament and member states that fear common rules will be complicated and costly, and who have to deal with pressure from far-right movements at home.

Malta will be represented at this summit by Prime Minister Lawrence Gonzi.