Italy at EU's helm: What awaits us in the next six months?

Italy has taken over the EU presidency from Greece as of 1 July 2014. Italian Prime Minister Matteo Renzi is not hiding the fact that he intends to push for a United States of Europe. Further tension among member states can be expected, and London certainly will not like this objective.

Italy also wants to focus on economic growth during the six months of its "reign". It will obviously attempt to push for greater flexibility regarding EU fiscal rules. Rome, which has been affected by high unemployment, want to push through the option of greater investments, mainly into energy and telecommunications infrastructure.

As far as relaxation of fiscal rules are concerned, Italy can rely on support from France. However, it will have to convince northern states of the EU that this will not lead to needles spending.

Illegal immigration will also be an important focus for Italy. The country often complains that because of its position it faces an excessive influx of immigrants from North Africa, and it asks other member states for solidarity and assistance. According to available reports, this year more than 50,000 immigrants reached Italian shores.

Martin Schulz will remain at the helm of the European Parliament

At its plenary session at the beginning of July, the European Parliament selected its chairman, elected in May.

He is again German Social Democrat Martin Schulz, who will preside over the European Parliament for another 2.5 years. MEPs elected him in the first round of voting, during which he received 409 of the 612 valid votes.

Conclusions of the European Council's June summit

The European Council held its summit in the Belgian cities of Ypres and Brussels on 26 and 27 June. At their two-day summit, EU leaders selected their candidate for chairman of the European Commission, Luxembourg Prime Minister Jean-Claude Juncker. His selection is now subject to approval by the European Parliament.

They also discussed the important priorities for the upcoming years, Ukrainian President Poroshenko's peace plan, the specific recommendations for member states within the so-called European semester, EU climate policy and issues related to security and justice.

At the summit, association treaties and free trade agreements were also signed by the EU with Ukraine, Georgia and Moldova. Ukraine signed the political part of the association treaty with the EU in March 2014, and now it has signed the economic part of it. As a result, all three countries will gradually be integrated with the EU's single market.

They are also expected to boost democracy and the function of the rule of law, carry out necessary reforms and fight against corruption. The signed agreements still need to be ratified by the individual partner countries and all EU member states. Thanks to the signing of the free trade agreements, exporters of goods to the EU will not have to pay customs duties. The same will apply for the EU's exporters to these partner countries.

It is also apparent from the conclusions of the summit that member states, despite signs of economic recovery, should continue with fiscal consolidation. Ways that member states can achieve this include lower taxation of work, reforming of education and boosting networking sectors.