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EU leaders seek tighter economic policy coordination

17 June 2010 12:47 (UTC +04:00)

Baku - APA-Economics. European Union leaders began talks on Thursday on ways to strengthen budget discipline and economic policy coordination, hoping to show financial markets they can see off a euro zone debt crisis, Reuters reported.

They will also discuss tightening financial regulation to prevent another global economic crisis, including a levy to make banks pay for future crises, and pressure is rising for Europe to publish results of stress tests that check banks’ liquidity.

The 27 member states, which represent more than 500 million people, have agreed on a 500 billion euro ($617 billion) safety net to help struggling countries that use the euro and a 110 billion euro aid mechanism for heavily indebted Greece.

The leaders broadly agree on the need for closer economic policy coordination, or "economic government", and on the need for tighter financial regulation, but do not see eye to eye on how to go about it.