European Commission President Jose Manuel Barroso on Tuesday said the forthcoming European Union (EU) Summit would focus on boosting growth and building a stronger Economic and Monetary Union (EMU).
"I believe this European Council must give strong impetus to our growth agenda while also setting out a longer-term process to build a stronger, genuine Economic and Monetary Union," Barroso said.
The Member States were expected to agree on a comprehensive package of growth measures, such as the increase on the European Investment Bank (EIB) lending capacity, project bonds and a more targeted use of the EU structural and cohesion funds, he said.
Member States were also expected to endorse the Country Specific Recommendations that the Commission set out on May 30. These reforms are about changing practices that impede EU's competitiveness and stop EU's markets working as they should.
At the summit on Thursday and Friday, heads of the European Commission, European Council, Eurogroup and European Central Bank will also present a report enunciating how to create a more integrated EMU.
The measures EU leaders are proposing center around three key points: a banking union, a fiscal union and further steps towards a political union.
The measures aim at breaking the vicious cycle whereby the use of taxpayers' funds to rescue banks makes sovereigns weaker, while the banks stop lending to businesses that need funds, making the economy slow down and weakening sovereigns even further.
"We can break this negative cycle now if we are bold enough to establish a strong and integrated financial framework," said Barroso.
The EU leader also called for more coordination in taxation policy and a much stronger European approach to budgetary matters at national and European levels.
This week's summit will probably not lead to any breakthroughs, said Barroso.
But it would most likely be a further step ahead in the EU's attempt to stay afloat in this shaky economic conjuncture, he said.