Doing more for the stability of the eurozone
(European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy speak at a press conference in Brussels. AFP photo)
"We are determined to take all necessary measures and actions needed to ensure the stability of the euro area. Since two years, we have taken steps to overcome the crisis but the immediate economic challenges are so serious that we must do more. All leaders agree to that," declared Herman Van Rompuy, President of the European Council, after the Euro Summit in Brussels on 23 October.
The Heads of State or Government of the euro area agreed on the objectives and outlined the strategy. They will conclude at the Euro Summit on 26 October.
President Van Rompuy mentioned the five fronts that the euro area is working on in the comprehensive strategy:
- action by all governments to ensure sustainable public finances and enhance growth. It means the full respect of agreed fiscal targets and an acceleration of structural reforms. "Between now and 26 October some members of the European Council will have to convince colleagues that their country implements the promised measures fully," said Herman Van Rompuy;
- working towards a solution with the private sector to improve sustainability as part of a new programme for Greece;
- a sufficient firewall against contagion by maximizing European Financial Stability Facility (EFSF) resources without extending the guarantees underpinning this facility. "Several options are being considered," informed President Van Rompuy;
- restoration of confidence in the European banking sector through a coordinated scheme to recapitalise the banks and to improve their funding. The agreement of the Finance Ministers will be finalised at the European Council on 26 October;
- better governance and stronger integration of the euro area. In the short term: improving organisation and strengthening fiscal and economic monitoring; in the medium term: stronger economic convergence, more efficient enforcement mechanisms and, ultimately, deeper fiscal integration.
"All the five elements are interrelated. Both technically and politically they are part of one single package. Further work is needed. That´s why we will take decisions at the follow-up Euro Summit," concluded Herman Van Rompuy.
