European leaders are set to discuss new rules for controlling deficits and a proposed bailout fund, as they work to find a solution to the continent's sovereign debt crisis.

The European Union says it expects leaders at its summit Monday in Brussels to sign off on a new permanent rescue fund for countries that use the euro currency.

The $661 billion fund, called the European Stability Mechanism, is due to be operational in July.

The EU says the talks will also focus on creating jobs, particularly youth employment.

The summit comes as Greece tries to secure a $169 billion loan package to avoid defaulting on its debts.

Greek Prime Minister Lucas Papademos said Sunday there is complete agreement on necessary austerity measures, after meeting with the leaders of the country's main political parties.

The budget cuts and a debt swap agreement with Greece's creditors would qualify Greece for a new bailout from the EU and the International Monetary Fund.

Protesters in Belgium shut down public transport and other services Monday ahead of the EU summit. Belgium's main unions are protesting austerity measures pushed by the EU.