At the end of last week, all eyes were on Brussels as EU leaders came together for the summit of the European Council on 28 and 29 June.

The European Council is an institution in charge of setting the overall political directions and priorities for the European Union.

It brings together the Heads of State or Government of Member States, the President of the European Commission, and also the President of the European Council, who chairs Council meetings and is a major face for the EU on the world stage. European Council meetings normally convene twice every six months.

While EU summits are held at regular intervals, last week’s event attracted a particular amount of attention, being regarded by many as a crucial opportunity to tackle the crisis in the eurozone. The summit started off amid doubts over whether it would be possible to find any significant solutions to the current crisis. But there was a general sigh of relief when EU leaders produced tangible solutions, described by Italian Prime Minister Mario Monti as “a very important deal for the future of the EU and the eurozone”.

The summit resulted in a range of short- and long-term solutions. Whilst the immediate aim of the agreement was primarily to stabilise markets, other measures were introduced to strengthen the Economic and Monetary Union in the future.

One of the major changes resulting from the summit revolves around the European Central Bank. European leaders agreed on significant changes to the ECB’s role, essentially making it the overarching supervisory authority for banks in the eurozone. Before the outbreak of the crisis, the quality of supervision in the banking sector varied widely across countries. Following the Council Meeting, the EU has decided to transform the ECB into a central supervisory body that will impose the same rules on all eurozone banks, thereby allowing for improved regulation. This measure is being treated as a matter of high urgency and should be implemented by the end of 2012.

Once this has been finalised, the European Stability Mechanism (ESM) funds will, under certain conditions, be allowed to be used for the direct recapitalisation of troubled banks. This means that banks could be supported without increasing the debt burden of governments. This move is intended to boost the confidence of markets. The incumbent President of the European Council, Herman Van Rompuy, hailed this decision, asserting that it is “imperative to break the vicious circle between banks and sovereigns”.

In addition, EU leaders agreed to a so-called “Compact for Growth and Jobs” in order to address the challenge of putting the EU economy back on the path to growth. The growth package applies to all 27 EU member states and is regarded as an important tool to boost the economy, employment and investment across the European Union, thereby making the region more competitive.

The package contains some €120 billion that will be channelled into growth-enhancing measures. The European Investment Bank is to receive €10 billion in order to strengthen its capital basis and raise its overall lending capacity by €60 billion. This money is designated for infrastructure as well as business projects, and will hopefully facilitate long-term growth.

A further €60 billion from unused structural funds is to be channelled into support for small- and medium-sized enterprises and measures to boost youth employment. In addition, a pilot phase for project bonds worth €5 billion is to be launched in the foreseeable future. These funds will be utilised for infrastructural initiatives in the fields of energy, transport and broadband. Mr Van Rompuy stressed the need to regard growth not purely as a matter of money, but as an overarching issue that touches upon many different aspects of the European Union’s activities. He described the growth agenda as a “sign of unrelenting commitment” to this goal. Mr Van Rompuy also affirmed that there is more that will be done in the area of growth initiatives, in relation to ensuring the future stability of the euro.

The outcome of the summit does indeed reflect the endeavour of EU leaders to find concrete and effective solutions to the crisis the European Union is facing. But it also sheds light on the long path of recovery that still lies ahead. Whilst the results of last week’s meeting may not be a panacea for Europe, they demonstrate a strong will to work together towards tangible solutions and raise hopes that Europe might be starting to glimpse the light at the end of the tunnel.

David Casa is a Nationalist MEP