BRUSSELS 1-2 Mar 2012 EU leaders look to move forward on euro stability
Twenty-six of the 27 European Union countries agreed in December on a pact aimed at ending the financial instability roiling the euro zone. EU President Herman Van Rompuy expects signatures on the so-called fiscal compact by March or sooner, as well as progress on the European Stability Mechanism (ESM), a permanent crisis-resolution fund. If the bloc's financial picture looks brighter by March, the leaders can revisit other EU concerns, such as enlargement and Balkan strife.

Hopes are high that the ESM, which will replace the European Financial Stability Facility (EFSF), will be ratified by national parliaments and ready to roll in July. The EFSF was used to bail out Ireland and Portugal and will be used to provide assistance to Greece under a follow-up aid program. A Reuters analysis on Dec 22 sees some easing in fears because of factors that include progress towards deeper euro zone integration and fatigue in markets after such a long period of all-consuming financial crisis.

The leaders took time out from the financial crisis at their December summit to sign an accession treaty with Croatia, which will join the bloc as its 28th member in Jul 2013. The leaders can be expected to pick up on the issue of eventual membership for Serbia and Montenegro once the financial crisis eases -- if it eases. (WRITTEN Dec 2011).

RELATED READING:

Analysis - Searching for glimmers of euro zone hope in 2012 (Reuters 22 Dec 2011)
http://www.reuters.com/article/2011/12/22/uk-eu-crisis-outlook-idUSTRE7BL0XC20111222

EU and Croatia remind world the Union is still working (EU Summit 9 Dec 2011)
http://euobserver.com/15/114577

Don't sideline EU enlargement (WSJ 7 Dec 2011)
http://online.wsj.com/article/SB10001424052970204903804577080081419419266.html?mod
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