Angela Merkel has asked for an "immediate
explanation" from the US
An EU summit is due to begin in Brussels with
fresh allegations of US spying threatening to
overshadow talks.
It comes a day after German Chancellor Angela Merkel
called President Barack Obama over claims that the US
had monitored her mobile phone.
France's President Francois Hollande is pressing for the
issue to be put on the agenda following reports that
millions of French calls had been monitored.
EU leaders will also discuss Europe's economic
recovery and immigration
BBC Europe Editor Gavin Hewitt says some leaders are
likely to want to use the summit to demand further
clarification from Washington over the activities of its
National Security Agency (NSA) in Europe.
The US is being called to account by its allies over
allegations of spying based on material said to originate
from fugitive American leaker Edward Snowden.
Mrs Merkel says she wants US officials to clarify the
extent of their surveillance in Germany.
Her spokesman said the German leader "views such
practices... as completely unacceptable".
The BBC's Stephen Evans in Berlin says Germany's
morning papers echo a sense of outrage.
A front-page commentary in Thursday's Suddeutscher
Zeitung - one of the country's most respected papers -
refers to the "biggest affront".
A key aim of the summit will be to boost the digital
economy, seen as vital in pushing growth
It says an attack on Angela Merkel's mobile phone
would be an attack on "her political heart".
The White House said President Obama had told Mrs
Merkel that the US was not monitoring her calls and
would not in the future.
However, it left open the question of whether calls had
been listened to in the past.
Meanwhile, a major focus of the summit will be to
boost the digital economy - seen as vital for growth -
while UK Prime Minister David Cameron will want red
tape cut for businesses.
Immigration and the recent disasters involving migrants
crossing the Mediterranean will also be discussed.
With markets becalmed, Spain coming out of recession
and Ireland soon to exit its bailout programme, there
are signs of progress for Europe's leaders to celebrate,
says our correspondent.
But they recognise that the recovery is fragile and solid
growth is needed.
One of the key initiatives of the European Commission
is its Digital Agenda for Europe , which it says "aims
to reboot Europe's economy and help Europe's citizens
and businesses to get the most out of digital
technologies".
Council officials say investment in the digital economy
is vital to boost growth. They want to address market
fragmentation and a perceived shortage in IT skills.
They may also discuss telecoms reform, data protection
and a cap on credit card payments.
Mr Cameron is likely to use the economic discussion to
raise what Britain sees as a proliferation of red tape.
He said last week: "All too often EU rules are a handicap
for firms," and that small business owners "are forced
to spend too much time complying with pointless,
burdensome and costly regulations".
The European Commission - which makes the rules -
has recognised that it may have gone too far in some
places.
President Jose Manuel Barroso says he wants the EU to
be "big on big things and smaller on smaller things".
He says the Commission has cut more than 5,000 legal
acts in the past five years and wants to do more.
On Friday the leaders will discuss relations with central
European countries, ahead of a November summit at
which new agreements will be signed.
The deal with Ukraine is still up in the air, with the EU
protesting at the detention of opposition leader Yulia
Tymoshenko.
Migration will also be discussed, following the loss of
hundreds of lives among migrants trying to reach
Europe from Africa and the Middle East.
The commission has called on EU countries to offer
"additional and urgent contributions" to prevent
further tragedies at sea.
It wants greater resources to survey and patrol sea
routes, but also a more co-ordinated approach to
dealing with migrants.
Countries on the Mediterranean coast deal with sudden
and unmanageable mass arrivals, but the countries
which approve most asylum requests are Germany,
France and Sweden.
The commission wants a more even resettlement of
refugees.
EU sources say the leaders are likely to promise
improved co-operation, but not more money or
resources. They say they first want a new surveillance
effort, Eurosur, to come into force, to see what effect it
has.
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