Finance Ministers from across the European Union met this week in Brussels for the first meeting on a new “fiscal compact.”

Relationship building and understanding will be vital and will mean services at this important summit will be paramount as the 27 leaders meet.

Chancellor George Osborne has been invited to the meeting as an “observer” after Britain did not back proposed changes to EU financial rules which were introduced because of the pressures surrounding the eurozone.

German Chancellor Angela Merkel offered Mr Osborne the chance to attend the meeting held in Belgium to listen to talks on the fiscal compact the 26 other EU countries were in favour of.

European Council president Herman Van Rompuy, who chairs EU summits, insisted the eurozone would achieve financial stability thanks to the discipline offered by the fiscal compact, once it is in place.

He said he expected talks on the compact – with Britain as a silent presence – should be completed by the end of the month.