Gonzi to meet Hollande, as EU leaders called to discuss 'growth over austerity'
Prime Minister Lawrence Gonzi will attend an informal European Council meeting in Brussels, and meet new French president Francois Hollande, who intends to flex his political muscles against austerity within the eurozone.
Francois Hollande will propose a series of measures to promote growth when he meets the EU's leaders, at an informal dinner organised by the European Council .
They will discuss ways to fund large-scale projects in Europe, including jointly backing bonds for specific schemes and pumping more capital into the European Investment Bank, which is the lending arm of the European Union .
But senior diplomatic sources say President Hollande also wants to bring more controversial proposals to the table including so-called eurobonds, jointly backed by all eurozone countries, which Germany adamantly opposes.
He also will raise the issue of a Europe-wide financial transaction tax, which the UK refuses to countenance.
Other countries, including Sweden, the Netherlands and Ireland, also have reservations about such a scheme, which the commission supports.
Sources suggest the dinner will produce little in terms of concrete policy announcements, but will "shape the discussions" leading up to a formal EU summit on June 28.
However, they suggest the informal summit will mark a fundamental shift in the political underpinning of the EU as the dominant Franco-German partnership of Angela Merkel and Nicolas Sarkozy has now been dismantled.