EURO
SUMMIT STATEMENT
DRAFT
Over
the last three years, we have taken unprecedented steps to combat the effects
of the world-wide financial crisis, both in the European Union as such and
within the euro area. The strategy we have put into place encompasses
determined efforts to ensure fiscal consolidation as well as growth, support to
countries in difficulty, and a strengthening of euro area governance. At our 21
July meeting we took a set of major decisions. The ratification by all 17
Member States of the euro area of the measures related to the EFSF
significantly strengthen our capacity to react to the crisis.
The
agreement on a strong legislative package within the EU structures on better
economic governance represents another major achievement. The euro continues to
rest on solid fundamentals. The crisis is, however, far from over, as shown by
the volatility of sovereign and corporate debt markets. Further action is
needed to restore confidence. That is why today we agree on additional measures
reflecting our strong determination to do whatever is required to overcome the
present difficulties.
1. Sustainable public finances and
structural reforms for growth
The European Union must improve its growth and employment outlook. We support the growth agenda agreed by today's European Council. We reiterate our full commitment to implement the country specific recommendations made under the first European Semester and on focusing public spending on growth areas.
The European Union must improve its growth and employment outlook. We support the growth agenda agreed by today's European Council. We reiterate our full commitment to implement the country specific recommendations made under the first European Semester and on focusing public spending on growth areas.
All Member States are determined to continue their policy of
fiscal consolidation and structural reforms. A particular effort will be
required of those Member states who are experiencing tensions in sovereign debt
markets. [In this context, we welcome the specific commitments made by Italy
and Spain]
Concerning the programme countries, we are pleased with the
progress made by Ireland in the implementation of its adjustment programme
which is delivering positive results. Portugal is also making good progress with
its programme. We invite both countries to keep up their efforts and to stick
to the agreed targets.
We want to reiterate our determination to continue to
provide support to all countries under programmes until they have regained
market access, provided they fully implement those programmes.
[pm strengthening of the monitoring of the Greek program]
[We welcome the decision by the Eurogroup on the
disbursement of the 6th tranche of the EU-IMF support programme subject to the
adoption of the prior actions agreed with the Greek government. We look forward
to the conclusion of a sustainable and credible new EU-IMF multiannual
programme by the end of November]
[ pm: PSI to be prepared by the Eurogroup]
We reaffirm clearly our unequivocal commitment that private
sector involvement is and will continue to be an exceptional solution applying
only to Greece, as its unique condition requires a unique solution.
All other euro area Member States solemnly reaffirm their inflexible determination to honour fully their own individual sovereign signature and all their commitments to sustainable fiscal conditions and structural reforms. The euro area Heads of State or Government fully support this determination as the credibility of all their sovereign signatures is a decisive element for ensuring financial stability in the euro area as a whole.
All other euro area Member States solemnly reaffirm their inflexible determination to honour fully their own individual sovereign signature and all their commitments to sustainable fiscal conditions and structural reforms. The euro area Heads of State or Government fully support this determination as the credibility of all their sovereign signatures is a decisive element for ensuring financial stability in the euro area as a whole.
2. Stabilisation mechanisms
The ratification process of the revised EFSF has now been
completed in all euro area Member States [and the Eurogroup has agreed on the
implementing guidelines]. The decisions we took concerning the EFSF on 21 July
are thus fully operational. All tools available will be used in an effective
way to ensure financial stability in the euro area.
[p.m. increasing the efficiency of the EFSF- to be discussed
by the Eurogroup]
The ESM treaty will be amended to reflect all the decisions
taken in July, and submitted to national procedures with a view to be enacted
as soon as possible and timely before June 2013. To this end, the revised ESM
treaty should be signed by Finance Ministers by the end of November.
[p.m.: full lending capacity of the ESM/ decision making procedures
- to be discussed by the Eurogroup]
We fully support the ECB in its action to ensure price
stability in the euro area, including its non-standard measures in the current
exceptional financial market environment.
3. Banking system
[p.m. reinforcement of banking sector to be discussed by the
Ecofin]
4. Economic and fiscal coordination and surveillance
The recent agreement on the legislative package on economic
governance (the so-called “six pack”) opens the way to strengthened economic
and fiscal policy coordination and surveillance. It will lead to closer
monitoring and possibilities of sanctions in the preventive arm, more rapid
reactions in case of slippages, more attention given to the debt ratio; and
higher focus on macroeconomic imbalances. We commit ourselves to the strict
implementation of the new set of rules. We call on the Commission and the
Council to exert rigorous surveillance and to make full use of the existing and
new instruments available. We also recall our commitments made in the framework
of the Euro Plus Pact.
Being part of a monetary union has far reaching implications
and implies a much closer coordination and surveillance to ensure stability and
sustainability of the whole area. The current crisis shows the need to address
this much more effectively. Therefore, while we strengthen our crisis tools
within the euro area, we will make further progress in integrating economic and
fiscal policies by reinforcing coordination, surveillance and discipline, while
preserving the integrity of the European Union as a whole.
More specifically, building on the "six pack", the
European semester and the Euro Plus Pact, we as euro area Heads of States or
Government commit to implement the following additional measures at the
national level:
- adoption by each euro area Member State of a balanced
budget rule translating the Stability and Growth Pact deficit and debt rules
into national legislation, preferably at constitutional level, by the end of
2012;
- reinforcement of national fiscal frameworks beyond the
Directive (….). In particular, national budgets should be based on growth
forecasts produced independently from the government; in case of consistent
upward bias, governments will be required to use the Commission forecasts.
- invitation to national parliaments to commit to take into
account recommendations adopted at the EU level on the conduct of national
policies.
- consultation of the Commission and euro area partners
before the adoption of any major fiscal or economic policy reform plans, so as
to give the possibility for an assessment of possible impact for the euro area
as a whole.
We also agree that closer monitoring at the European level
is warranted along the following lines:
- for euro area Member States in excessive deficit procedure
and programme countries, the Commission and the Council will be enabled to
examine national draft budgets before their submission to the national
parliament, in order to adopt an opinion on these draft budgets, to monitor
budget execution and, if necessary, to suggest amendments in the course of the
year.
- the Eurogroup will be enabled to adopt a recommendation
for a euro area Member State to engage into an adjustment program supported by
the EFSF/ESM;
- in case of slippages of an adjustment program and
difficulties in implementation, structures for closer monitoring and
coordination of programme implementation will be put into place. In this
respect, we look forward to the Commission's forthcoming proposal on closer
monitoring to the Council and the European Parliament under Article 136 of the
TFEU.
We will continue to implement the Euro Plus Pact to
strengthen the economic pillar of the EMU and better coordinate economic
policies. Building on the Pact, we will achieve further convergence of policies
to promote growth and employment. Closer coordination in the euro area is also
warranted in taxation matters which are essential for greater convergence and
coordination of euro area economies. We recall in this context that we are all
constructively engaged in the discussions on the Common Consolidated Corporate
Tax Base.
5. Governance structure of the euro area
To deal more effectively with the challenges at hand and
ensure closer integration, our governance structure for the euro area needs to
be strengthened, while preserving the integrity of the European Union as whole.
We will thus meet regularly at our level, in Euro Summits,
to provide strategic orientations on the economic and fiscal policies in the
euro area. This will allow to better take into account the euro area dimension
in our domestic policies.
The Eurogroup will, together with the Commission and the
ECB, remain at the core of the daily management of the euro area. It will play
a central role in the implementation by the euro area Member states of the
European Semester. It will rely on a stronger preparatory structure. More
detailed arrangements are presented in the annex to this paper.
6. Further integration
The euro is at the core of our European project. We will
strengthen the economic union to make it commensurate with the monetary union.
We ask President Van Rompuy, in close collaboration with
President Barroso and President Juncker, and with the help of high-level
technical expertise, to identify possible steps to reach this end. The focus
should be on how to further strengthen economic convergence within the euro
area, to improve the effectiveness of enforcement mechanisms, and to deepen
fiscal integration.
An interim report will be presented in December 2011 so as
to agree on first orientations. A full report, including a roadmap on how to
implement those measures will be finalised by [March/June] 2012, in full
respect of the prerogatives of the institutions. This report will indicate any
issues that require treaty change pursuant to Article 48 of the TEU.
Annex
DRAFT 20-10-11
Ten measures to improve the governance of the Euro area
There is a need to strengthen economic policy coordination
and surveillance within the euro area, to improve the effectiveness of decision
making and to ensure more consistent communication. To this end, the following
ten measures will be taken, while fully respecting the integrity of the EU as a
whole:
1. There will be regular Euro Summit meetings bringing
together the Heads of State or government (HoSG) of the euro area and the
President of the Commission. These meetings will take place at least twice a year,
at key moments of the annual economic governance circle; they will normally
take place after European Council meetings. Additional meetings can be calle by
the President of the Euro Summit if necessary. Euro Summits will define
strategic orientations for the conduct of economic policies and for increased
convergence in the euro area. The President of the European Council will ensure
the preparation of the Euro Summit, in close cooperation with the President of
the Commission, on the basis of the work of the Eurogroup.
2. The President of the Euro Summit will be designated by
the HoSG of the euro area at the same time the European Council elects its
President and for the same term of office. Pending the next such election, the
present President of the European Council will chair the Euro Summit meetings.
3. The President of the Euro summit will keep the non euro
area Member States closely informed of the preparation and outcome of the
Summits. The President will also inform the European Parliament of the outcome
of the Euro Summits.
4. As is presently the case, the Eurogroup will ensure ever
closer coordination of the economic policies and promoting financial stability.
Whilst respecting the powers of the EU institutions in that respect, it
promotes strengthened surveillance of Member States' economic and fiscal
policies as far as the euro area is concerned. It will also prepare the Euro
summit meetings and ensure their follow up.
5. The President of the Eurogroup is elected in line with
Protocol n°14 annexed to the Treaties. A decision on whether he/she should be
elected among Members of the Eurogroup or be a full-time President based in
Brussels will be taken at the time of the expiry of the mandate of the current
incumbent.
6. The President of the Euro Summit will be consulted on the
Eurogroup work plan and may invite the President of the Eurogroup to convene a
meeting of the Eurogroup, notably to prepare Euro Summits or to follow up on
its orientations. The President of the Euro summit will meet regularly, at
least once a month, with the President of the Commission, the President of the
Eurogroup and the President of the ECB. The Presidents of the supervisory
agencies and the EFSF/ESM chair may be invited on an ad hoc basis. These
meetings will be used to establish clear lines of responsibility and reporting
between the Euro Summit, the Eurogroup and the preparatory bodies.
7. Work at the preparatory level will continue to be carried
out by the Eurogroup Working Group(EWG), drawing on input mainly provided by
the Commission. The EWG also prepares Eurogroup meetings. It should benefit
from a more permanent sub-group consisting of alternates/officials
representative of the Finance Ministers, meeting more frequently, working under
the authority of the President of the EWG.
8. The EWG will be chaired by a full-time Brussels-based
President. He/she should preferably also chair the Economic and Financial
Committee.
9. The existing administrative structures (i.e. the Council
General Secretariat and the EFC Secretariat) will be strengthened and
co-operate in a well coordinated way to provide adequate support to the Euro
summit President and the President of the Eurogroup, under the guidance of the
President of the EFC/EWG. External expertise will be drawn upon as appropriate,
on an ad hoc basis.
10. Clear rules and mechanisms will be set up to improve
communication and ensure more consistent messages. The President of the Euro
Summit and the President of the Eurogroup have a special responsibility in this
respect.
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