French President Franςois Hollande and German Chancellor Angela Merkel both talked up the so-called growth pact that European Union leaders are expected to discuss Thursday in the first session of their latest summit.
Speaking to reporters outside EU headquarters in Brussels, Merkel said the pact on growth and employment is "a good program" that will, among other things, help bring down unemployment rate for young Europeans, which stands near 20%.
Hollande said his goal was to ensure that policies to support economic growth "are at the heart" of EU deliberations. "The summit already has the tools to accept the growth pact," he added.
Merkel and Hollande hammered out the details of the pact with the leaders of Spain and Italy last week.
The pact will be worth up to 130 billion euros, or 1% of eurozone gross domestic product. The details have yet to be announced, but euro area leaders have signaled that the pact will center on boosting the resources of the European Investment Bank.
The goal is to stimulate growth and create jobs by spending EU money on public works and other infrastructure investments.
The focus on growth is encouraging, since the European economy is in bad shape. But the amount involved is relatively small and the pact is largely based on existing policies.
The leaders are not expected to make any progress on big picture issues, such as merging the debts of euro area governments.
Hollande said he will push for "supplementary actions" to help countries that are having "difficulties" in the market. Without going into detail, Hollande stressed that he is advocating solutions that can be implemented "very quickly."
France, Italy and Spain are all in favor of steps to bring down the cost governments must pay to borrow money in the bond market. But the fiscally conservative German government has been reluctant to use eurozone bailout funds to subsidize government debt.
As European leaders gear up for a two-day summit in Brussels, German Chancellor Angela Merkel made her anti-eurobond stance crystal clear.
"To force one single interest rate by means of eurobonds politically, which already have not worked on the markets, would be repeating of an old mistake and not the lesson learnt from experience," said Merkel, speaking in front of Germany's Lower House of Parliament Wednesday.
The idea of eurobonds, which would MORECatherine Tymkiw - Jun 27, 2012 10:30 AM ET
Not a member yet?Sign up now for a free account
|Scandal-ridden food processor issues recall|
|Math nerds are taking over Wall Street|
|The jobs report, GDP and Fed will set tone for stocks this week|
|BuzzFeed fires viral politics editor for plagiarizing|
|Introducing the $7.76 Big Mac|