Prime Minister Helle Thorning-Schmidt expects a ‘big battle’ ahead at the EU summit as the Union’s heads of state and government prepare to discuss long-term solutions to Europe’s economic crisis.

Italy’s Prime Minister Mario Monti has already warned of a ‘catastrophe’ if the summit fails to introduce the right measures to solve the crisis.

“Big words and probably a way to warm up for the big fight the Euro countries are to have,” Thorning-Schmidt says adding: “It’s going to be a long night. I’m sure of that.”

European President Herman van Rompuy is to present his report, suggesting that member countries enter into a financial and banking union designed to strengthen European economies. One of the more controversial proposals is that member countries should agree to be collectively liable for debt in order to ease the interest burden on the most indebted countries.

While Thorning-Schmidt welcomes the discussion that is to take place on the proposals, she has made it clear that Denmark is not prepared to commit itself to a debt regime.

“It is difficult to imagine that Denmark, which has a responsible economic policy, takes difficult decisions and has to bear the consequences, should go in and be responsible for the debt of other countries,” she says.

Growth package
Thorning-Schmidt says she expects the summit to agree to a growth package as called for by the French President François Hollande.

“We have been talking for some time about focussing on growth and employment apart from discipline. Now we’ll be getting a growth package and it’s obvious that can make a difference,” the prime minister says.

Governments have plans to target funds from the European structural funds for initiatives to create jobs; and to increase funding to the European Investment Bank, which makes funds available to public and private projects that are in the interests of Europe.

Some criticism has been raised that the growth package is old wine in a new bottle and may not be providing enough money.

“It’s certainly new money. You can always say there should be more, but that is what member economies can manage. Denmark also contributes to the European Investment Bank, and that means that there will be new money that can create new money because it can be geared to private investment,” Thorning-Schmidt says.

Patent Court
The summit is the last one of the Danish presidency which ends on Saturday. Thorning-Schmidt hopes that heads of state and government can agree to set up a European Patent Court. The court would make it possible for member countries to seek patents in one place rather than in 27 countries.

FACEBOOK – Follow Politiken’s News in English