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European leaders will discuss plans for deeper economic integration in the euro zone at their next meeting in June, after an inconclusive summit yesterday (23 May) saw open divergences between France and Germany over ways to kick-start the EU's sluggish economy.

In the absence of an agreement for launching Eurobonds, the EU institutions agreed yesterday (22 May) to launch the first ‘project bonds’ as a pilot project to boost investment in energy, transport and the digital economy.

The informal “summit for growth” to take place today will discuss several controversial options for injecting confidence into financial markets, including a call for Eurobonds that is likely to divide member states.

French President François Hollande said he would promote the idea of mutualised European debt at an informal summit in Brussels this week, increasing pressure on German Chancellor Angela Merkel to drop her opposition to the proposal.

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