European Council:extracts from the press conference by José Manuel BARROSO, President of the EC, Herman VAN ROMPUY, President of the European Council and Helle THORNING-SCHMIDT, Danish Prime Minister
Lieu: Brussels, Belgium - Council
End production: 29/06/2012 First transmission: 29/06/2012
On 29 June, at the final press conference, Herman Van Rompuy, President of the European Council, José Manuel Barroso, EC President, and Helle Thorning-Schmidt, Danish Prime Minister, announced that the Council reached a final agreement on the EU patent and on strong measures to strengthen the euro area.
The main seat of the patent institution will be set up in Paris and two other specialized offices will be established in London and Munich. EU politicians said that the patent scheme is not only key to save businesses money, but also to revive growth in the crisis-hit bloc.
The European Union leaders also agreed early Friday on short-term measures and long-term plans aiming at restoring confidence in the Euro currency. The possible direct recapitalization of the banks by the ESM under strict conditions and circumstances is a 'major breakthrough', said Herman Van Rompuy.
The leaders took decisions 'which were unthinkable just some months ago', said José Manuel Barroso.
Markets breathed a huge sigh of relief after the leaders agreed to this recapitalization plan.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||General view of press conference (2 shots)
||SOUNDBITE (in English) Herman Van Rompuy, President of the European Council: Last night we agreed that under certain circumstances and under certain conditions, the ESM could recapitalize the bank directly. The biggest of the most important condition is setting up a single supervisory mechanism for banks and Euro zones leaders have asked the Council to work in a very speedy way, so that we can have results by the end of the year. This is a major breakthrough, I said it this night. It is a first step to break the vicious circle between banks and sovereignty.
||SOUNDBITE (in English) Helle Thorning-Schmidt, Danish Prime Minister: Secondly, of course, I would like to point out that after 30 of negotiations, we now have an agreement on the European patent. European business from now will experience when we will have it finalize that instead of applying for patent in 27 Member States, they can apply in only one place. And that is something that would be good of course for growth and business in Europe. The agreement is the following; the main seat, the central division of the court of patent will be in Paris. It will also be that the first President of court of patent should come from the Member State hosting this central division. But there is also highly specialized nature of the patent and that means we have decided to create two sections; one in London and other one in Munich. But the main seat will be in Paris.
||SOUNDBITE (in English) José Manuel Barroso, EC President: We have agreed short term measures to support countries under market pressure. Following the presentation of the EMU report, we have now a clear commitment to a single banking supervisory mechanism for the Euro area. We have a clear commitment that when this supervisory mechanism for the Euro area is established, the direct recapitalization of bans will be possible by the ESM under very strict conditions. And we have an agreement to wave the seniority of future loans for Spain financial sector recapitalization under ESM. So once a gain we have taken decision which were unthinkable just some months ago.
||Cutaway of the audience
||SOUNDBITE (in English) José Manuel Barroso: The Commission will come with a proposal very soon based on the article127, paragraph 6 for a single supervisory mechanism. And of course, we know that it is not the supervisory mechanism which will do the rest of the work but that was considered as a condition when we have an integrated financial supervision in the euro area, this is a condition for going on with the idea of direct recapitalization of banks.
||Cutaway of the press