The leaders are expected to discuss an agreement on budgetary reforms known as the “fiscal compact,” as well as the emergency fund for debt-hobbled EU countries.
Ahead of the summit, French President Nicolas Sarkozy announced plans to impose a new 0.1 percent tax on all financial transactions in France, beginning in August.
Sarkozy said he hopes to “create a shock” with the tax and inspire other European countries to follow.
A number of other EU leaders are opposed to such a tax.
As the EU summit was getting under way, Belgian labor unions began a 24-hour strike to protest austerity measures, throwing transport and other public services into disarray.
Analysts say people throughout the EU are growing tired of austerity measures.
Overall, 23 million people are jobless across the EU, representing 10 percent of the active population.
In debt-ridden Greece, the government in Athens is close to securing a deal with its private creditors to write off $170 billion of debt.
compiled from agency reports
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