EU Council to discuss further euro area economic integration

While Greece is no doubt going to be discussed at the EU Summit, the official economic agenda includes the Digital Single Market strategy, the European Semester, the TTIP and the report from the four Presidents on euro area integration. On the first topic, the main objective of the Digital Single Market is to find ways to allow better cross-border access to digital services. This will entail harmonisation of internet regulation and copyright laws, a reliable and uniform high-speed broadband, but also a common personal data protection system. 

According to a Commission study, the Digital Single Market would boost EU growth by up to €250bn, mainly via lower costs for consumers and broader competition.

The key topic for the June Council is the move towards further euro area integration and to improve governance. The report from the Four President (EU, Commission, ECB, and Council) will be presented. This report is expected to include measures to further steps towards budgetary and economic cooperation. 

A discussion is also likely on further labour, pension and product market reforms in order to harmonise the social security system in particular, expects Societe Generale. The creation of common (but limited) shock absorption mechanism (I.e. an insurance-type system), seems no longer on the cards (at least not at this Summit). 

Finally, a more politically integrated EMU should also be discussed. However, this would implicitly lead to a two-speed EU. The report is unlikely to lead to dramatic changes in the euro area governance and integration process as France and Germany in particular want to keep away from any measures that would require Treaty changes before their general elections in 2017, adds SocGen.