By Bruno Waterfield | Telegraph.co.uk
A classified draft of next weeks EU summit conclusions is the first step on an emerging roadmap to a banking union, pooling debt via eurobonds and political union via EU treaty change over the next 10 years.
The limite text - published exclusively by The Daily Telegraph, is secret, restricted for the "eyes only" of diplomats and officials preparing for the 28 and 29 June European Council in Brussels.
Most of the text, the annexed Compact for Growth and Jobs, are deals on project bonds and other small scale EU initiatives that FranCois Hollande is trumpeting as a 120bn growth pact.
The first draft is relatively uncontroversial because the eurobond and "banking union" issues are currently all too sensitive to be committed to paper for officials.
Other so-called "non-papers" are circulating at a top secret level between national capitals and Brussels.
The difficult issues not included in the draft are the p.m items in the draft: other financial stability measures and PEC report on EMU.
The UK which has no veto under current proposals on deepening EU banking regulation faces the ECB becoming Europes main banking regulator. Photo: Reuters
Translated from the Brussels jargon, the PEC president of the European Council report will be Herman Van Rompuys preliminary text of the future of Economic and Monetary Union. This will be circulated in sealed envelopes next week.
The separate text will set out a roadmap to a banking union, polling debt via some kind of eurobonds and political union via EU treaty change over the next 10 years.
Also important and controversial is will the other financial stability measures paper, including financial transition tax proposal and moves towards a banking union that can be taken by the EU before the end of the year.
Read the full article at: telegraph.co.uk