Merkel, Hollande to meet to discuss EU

The Italian prime minister will host the German chancellor and French president ahead of September's EU summit called to discuss Brexit issues.

Angela Merkel (R) and Francois Hollande

The leaders of Germany, France and Italy will meet on Monday to discuss how to keep the EU together. (AAP)

The leaders of Germany, France and Italy will meet on Monday to discuss how to keep the European project together in the second set of talks between the premiers of the eurozone's three largest economies since Britain's shock vote to leave the bloc.

Italian Prime Minister Matteo Renzi hosts German Chancellor Angela Merkel and French President Francois Hollande on an island off the coast of Naples ahead of September's EU summit called to discuss reverberations from the Brexit vote.

Officials in Brussels and Berlin fear the June 23 vote could lead to a referendum in the Netherlands - a founding member of the union - on whether to also leave the bloc.

"Monday aims to show the unity of Europe's three biggest countries, but not to create a specific club," a French diplomatic source said, noting that the aim was to prepare the groundwork for the forthcoming Bratislava summit.

Faced with existential risks, Merkel wants to cement "a better Europe" rather than forge ahead with "more Europe". Renzi wants Italy to have a strong voice in how the bloc's future is shaped after Brexit and, according to the French diplomatic source, Hollande wants an EU-wide investment plan to be doubled.

The three leaders differ over how to boost economic growth - which slowed across the 28-nation bloc in the second quarter and stagnated in France and Italy - and cut unemployment.

France supports Renzi's push for expansionary measures and against austerity, Germany is likely to oppose any undermining of Europe's deficit and the debt constraints that Italy and France have struggled to comply with.

Italy is eager for greater European consolidation in the wake of Brexit, but Merkel is more concerned about preserving the integrity of the eventual 27-member bloc.

Lingering threats to the union that emerged long before the Brexit vote are also likely to be on the agenda, including internal and external security after Islamist militant attacks and Europe's migration crisis.

Emboldened by the Brexit vote, Hungary's Prime Minister Viktor Orban has called a referendum on October 2 on whether to accept any future EU migrant settlement quotas as his government steps up its fight against the EU's migration policies.

In a symbolic choice of venue, the three leaders will hold their closing news conference on the Italian aircraft carrier, the Garibaldi, which is the flagship of the EU's "Sophia" mission in the Mediterranean.

The naval operation has a mandate to tackle migrant smugglers, help enforce an arms embargo off Libya, and train the Libyan coast guard.


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Source: AAP



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