European summit on euro crisis

Introduction

On 22 October the House of Representatives held a debate ... on a Saturday. That was something exceptional, because it had not occurred since 1918. The reason was the European summit that took place on Sunday 23 October, where the heads of state or government of the European Union discussed a solution for the ongoing euro crisis. The House considered this meeting so important that it wanted to have a debate with the government beforehand.

On Sunday 23 October the heads of state or government did not manage to reach an agreement. That is why this meeting was followed by a second summit on Wednesday 26 October.

European summit

A European summit, or European Council, is a meeting of the heads of state or government of the 27 member states of the European Union. The President of the European Council, Mr Herman van Rompuy, the President of the European Commission, Mr Barroso, and Ms Ashton, high representative of the European Union for foreign affairs and security policy, were also in attendance. The European Council was followed by a meeting of the heads of state or government of the 17 EU member states that use the euro as their currency. At present, solving the euro crisis is the key issue of these meetings.

Euro crisis

Many EU -countries saw their budget deficit grow over the past few years, to the extent that they exceeded the agreed EU -budgetary rules. As a result, interest on government loans is rising, leading to uncertainty about the sustainability of public finances in Greece. Because the problems of Greece were growing worse and even threatened to damage other member states, the EU decided to come to Greece's assistance.

Measures

In order to control the euro crisis, the euro countries took a number of measures over the past time. For instance, many countries announced drastic spending cuts. Stricter European budgetary rules, with more automatic sanctions, were also agreed on. Moreover, a temporary emergency fund was established, the European Financial Stability Facility (EFSF). Countries in need of immediate support can refer to this fund.

European Council 26 October

The aim of the European Council of the heads of state and government on 26 October was to reach an agreement on a credible solution for the Greek debt problems, on a more flexible use of the EFSF and on sustainable measures for individual member states, in order to restore financial stability to the entire euro zone.