Leaders from the European Union are gathering in Brussels for a two-day summit to break the deadlock concerning the Lisbon Treaty, tackle rocketing unemployment and strengthen financial supervision.

European Commission President Jose Manuel Barroso says financial and economic issues are on top of the summit's agenda.

"We're now living in a very serious crisis. Economic, social crisis are not only in Europe but also in the world. The world can not wait for Europe. I'm sure that this European Council will produce results that are of great interest for our citizens. Our citizens want to see action, a European Union with a sense of responsibility and action."

Facing swelling joblessness across the EU, the leaders are expected to approve a proposal by the European Commission, the executive body of the EU, to boost employment.

Key measures include safeguarding jobs, upgrading training and providing support for business and industry via a European microcredit program.

The summit will also discuss the Commission's proposal for a pan-European system of financial supervision to avoid reoccurrence of similar crises in the future.

The proposal includes the creation of three pan-European watchdogs and a European Systemic Risk Board that will monitor risks to economic stability.

The new watchdogs will monitor countries to make sure that they introduce the new rules.