Members held a debate in preparation of the meeting of the European Council on 8-9 December 2011 in Brussels. They called on the European Heads of State and Government to adopt stricter measures to tackle the crisis.

Council : stressing the need to continue with structural reforms and budgetary consolidation, the Council’s representative stated that the Summit’s decisions should be guided by three principles: (i) more unity, (ii) more Europe in the form of strengthened economic governance and iii) strengthened EU institutions, (i.e. essentially a bigger role for the Commission).

Commission : Vice-President Olli Rehn said the main priorities for 2012 are continued fiscal consolidation, a strengthened banking sector through recapitalisation and protecting the EU's financial stability. Commenting on changing the treaties, he explained that it wouldn't be a solution for the current crisis but could help the EU avoid future crises.

The positions of the various political groups may be summarised as follows:

EPP : eurobonds, as well as the restoration of trust in the ECB and IMF are key. Measures should be taken at an EU level, but national deficits must also be brought down and budgetary balance established. S&D : the President of the group agreed that treaty revision would not restore confidence, because the eurozone cannot wait two years for changes to take effect. European leaders must decide if they want eurobonds or not and whether the ECB should be a lender of last resort or not. ALDE : criticising the inability of France and Germany to deal with the crisis, the Liberal group leader stressed the need to introduce Eurobonds and expressed his support for fiscal union. ECR : the group warned that if eurozone countries really want to keep the euro, it may mean that they have to give up fiscal sovereignty. The group does not oppose the euro, but it opposes the measures that are bad for it. Greens/EFA : noting that the austerity measures introduced in Italy and Greece so far have not worked, the group called for the ECB to play its role and to launch Eurobonds. GUE/NGL : the group considers that the rules underlying the financial system have changed and that more and more European countries are suffering as a result and not simply Greece, Spain and Italy.

The Council examined a draft agenda for the European Council meeting to be held on 9 December 2011.

The European Council is due to focus on:

(1) Economic policy :

a review of the economic situation in Europe: it will revert to the question of promoting growth in Europe, with particular attention to prioritising growth-enhancing initiatives, reducing the overall regulatory burden as regards SMEs and micro-enterprises, delivering the Single Market Act and completing the Digital Agenda ; the Member States participating in the Euro Plus Pact will track progress on their commitments: they will also be seized of a report of their Finance Ministers on progress made on coordination of tax policy issues; discussion on reflections by the euro area Member States on the strengthening of economic governance in the euro area on improving fiscal discipline and deepening economic union, including exploring the possibility of limited Treaty changes.

(2) Energy : the European Council will, on the basis of a report by the Presidency, track progress on the implementation of the guidelines set in February 2011, in particular as regards energy efficiency, the internal energy market, energy infrastructure development and external energy policy. It will also assess the initial findings of the nuclear stress tests on the basis of a preliminary report from the Commission as well as the progress report on the security of nuclear power plants.

(3) Other issues, in particular EU enlargement : the Council will hold a further discussion at a meeting on 5 December, on the basis of draft European Council conclusions. The signature of a treaty on the accession of Croatia to the EU is scheduled in the margins of the European Council.