Business World

Leaders say EU must move forward after ‘Brexit’

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THE leaders of the euro zone’s biggest economies held talks on Monday in the aftermath of Britain’s shock decision to leave the European Union (EU) and said Europe had to turn its back on populists who blamed Brussels for all its problems.

Speaking on an aircraft carrier off the Italian island of Ventotene, Germany’s Angela Merkel, France’s Francois Hollande and Italy’s Matteo Renzi issued calls for closer security cooperatio­n and better opportunit­ies for young people.

In a meeting heavy on symbolism, the three leaders visited Ventotene to lay a wreath on the tomb of Altiero Spinelli, an Italian intellectu­al seen as a founding father of European unity.

They then boarded the Garibaldi, which is in the front line of an EU mission to combat people trafficker­s who have carried hundreds of thousands of migrants to Europe across the Mediterran­ean.

“For many populists, Europe is to blame for everything that goes wrong,” Mr. Renzi said at the joint news conference before the leaders sat down for talks aboard the ship.

“Immigratio­n, it’s Europe’s fault, the economy is bad, it’s Europe’s fault. But that is not the case.”

The meeting was designed to lay the groundwork for an EU summit in Bratislava next month.

Monday’s talks marked the beginning of a week of meetings for Ms. Merkel with other European government­s that will see her travel to four countries and receive leaders from another eight.

“We respect Great Britain’s decision but we also want to make clear that the other 27 (member states) are banking on a safe and prospering Europe,” the German chancellor said.

DIVISIONS

But questions of how to bring about prosperity have divided the three countries.

Heavily indebted Italy, whose economy has barely grown since the introducti­on of the euro currency in 1999, has repeatedly chafed against stern EU budget rules, and both Messrs. Renzi and Hollande want greater flexibilit­y to help boost growth.

Germany is keen for rules to be respected, and Mr. Renzi and Ms. Merkel sidesteppe­d a question on deficit limits.

All three leaders are threatened at home. Ms. Merkel faces discontent over her controvers­ial decision to let in a million mainly Muslim migrants last year.

France is reeling from a wave of Islamist attacks and Mr. Renzi faces a referendum on constituti­onal reform this autumn that could trigger his downfall.

The EU plans to offer incentives to African government­s to help slow the f low of migrants into Europe, but divisions among member states are stark.

Italy, the main entry point for Africans but rarely their planned destinatio­n, is struggling to house migrants turned back from neighborin­g countries including France, and disagrees with Germany over how to finance the response.

Mr. Hollande stressed the need to protect the EU from militant violence by tightening borders and sharing intelligen­ce.

“To have security we need frontiers that are controlled so that is why we are working to reinforce coast guards and border guards,” he said. “We want more coordinati­on in the fight against terrorism.” —

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