An informal meeting of the European Council, consisting of EU heads of state and government, is being held in Brussels on March 1 2009 at the initiative of the Czech Presidency of the EU.

In a letter of invitation to EU leaders, Czech prime minister and head of the European Council, Mirek Topolanek, said: "We are facing an unprecedented crisis. What started as financial turbulence triggered by malpractices by certain banks has become a major financial crisis, whose negative effects are spreading to the real economy. The present situation requires that we reiterate, at the highest level, our commitment to face the impacts of the crisis in a cooperative and co-ordinated manner".

This was why he had called the summit ahead of the formal spring meeting of the European Council.

"First, as regards the financial sector, the top priority is to ensure the restoration of credit flows in the economy. This requires action on many fronts, including on the issue of impaired banking assets. The crisis has also revealed the urgent need to improve the regulation and supervision of financial institutions. We also need to discuss ways to strengthen macrofinancial stability in Europe," Topolanek said.

"As for the real economy, it is essential that we continue to coordinate the implementation of our national recovery plans on the basis of the guidelines we set last December. We will assess the implementation of the European Recovery Plan more thoroughly on 19 and 20 March, but already this Sunday we should discuss the means required to support our industries, including the car manufacturing sector, whilst ensuring a level playing field for all companies. We need to stress the vital role played by the single market in making the European economy more resilient," he said.

Topolanek said in the letter that measures to support the banking sector and industry at national level must be mutually reinforcing and avoid negative spill-over effects.

"We should reflect on concrete steps that can be taken to provide the best possible consultation and co-operation for this purpose. We also need to reiterate our commitment to return to the medium-term budgetary targets as soon as possible."

He said that it was important to emphasise that "we should also exchange experiences on how best to stimulate employment, prevent job losses or, as the case may be, limit such losses".

European leaders would revert to this issue at the spring European Council on March 19 and 20 as well as at the special summit that Topolanek said will be convening in May.

He said that on March 1, he would ask European Commission President Jose Manuel Barroso to brief the European Council of the commission’s intentions in these areas.

"Given the importance of the financial sector, I have also invited the President of the European Central Bank to share his views on these issues with us."

"I will also ask Gordon Brown, in his capacity as the G20 Chair, and Angela Merkel, in the light of the meeting she organised on February 22, to brief us on the preparations underway regarding the forthcoming G20 Summit. This information will be useful in preparing for our formal meeting on March 19 and 20, which will establish the position of the European Union for the London Summit (of the G20)," Topolanek said.

Topolanek said that, given the informal nature of the March 1 meeting, no conclusions will be adopted.

"However, due to the importance of communicating a strong message to our citizens about the measures being undertaken by the European Union and the member states, I intend to prepare a short text of ‘joint press lines’," Topolanek said.

On February 25 2009, the European Commission held a special meeting on the European Economic Recovery Plan with representatives of trades unions and employers at EU level.

The meeting showed a wide consensus that the internal market and the Recovery Plan provided the right springboard for tackling the crisis and taking action on jobs in Europe, and that further measures would have to be put in place at EU level, the EC said.

"Tackling the economic crisis and taking action on jobs means working together," Barroso said.

The EC said that its policy was aimed at limiting the impact of the crisis on the real economy and jobs, preparing businesses and the workforce for recovery and helping Europeans to find jobs that are sustainable for the future.

At the February 25 meeting, the EC and the European social partners (ETUC, Business Europe, CEEP and UEAPME) agreed on the need to work together to safeguard and develop further the social and economic achievements of the EU and its internal market as the source of prosperity, growth and jobs in Europe.
The EC said that the European social partners also welcomed the European Economic Recovery Plan as the right starting point and made clear their readiness to work to ensure its effective implementation and to carry it through into further action with the ambition required.

The European Economic Recovery Plan proposed by the EC and adopted by the European Council in December 2008 sets out a wide range of measures to keep and create jobs and maximise the ability of the European economy to get through the recession.

Many of the key elements in the Recovery Plan will have a direct impact on the workforce. These include training to keep people in work and to help them find new jobs. EU funding is available through the European Social Fund and the European Globalisation Adjustment Fund, and new sources of finance are available for SMEs.

The EC said that the discussion with the social partners' representatives focused on their proposals for measures to enhance growth and employment, to implement flexicurity measures and support companies and workers through the recession, to encourage investment and keep up purchasing power and demand, to respect free movement of workers and collective agreements, and to guarantee the continuation of the single market.

Their views will be fed into the input of the EC to the March 1 informal meeting, the Spring European Council and the Employment Summit which will take place in May.

"The Commission and the social partners agreed to work closely together and to find ways to ensure that employers and trades unions from across the European Union can contribute to the successful recovery of the European economy," the EC said.