The European Council will focus on economic policy, adopting a compact for growth and jobs and endorsing country-specific recommendations on the member states' economic and fiscal policies. Starting on 28 June, it will first discuss the EU's multiannual financial framework for the 2014-20 period, before dealing with the compact for growth and jobs. Over dinner, President Herman Van Rompuy will present a report, prepared in cooperation with the presidents of the Commission, the Eurogroup and the European Central Bank, setting out a vision for the future of the EU's economic and monetary union.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Herman Van Rompuy , President of the European Council
||Arrival and SOUNDBITE by Dalia Grybauskaitė, Lithuanian President (In English) saying that: For the future we will need a very general supervisory bodies to look more carefully and more responsibly for the financial sector and for the banking sector and I hope that in a very few weeks the Eurozone leaders will be to able to find the concrete mechanisms how to control not very well behaviour banks and to help them.
Journalist: Question on recapitalization
I do not want to go to the details because is not still yet decided today, but at least the chance for recapitalization is agreed last night.
Journalist: How do you keep the public of the EU on board with these changes?
I think that we have not choice all of us because Europe needs get off the crisis and that's a necessity for the future people also.
||SOUNDBITE by Dalia Grybauskaitė (In English) saying that:
Journalist: Question about Syria
I know that Madame Ashton is going tomorrow for the meeting on this matter and everybody wants to seek the solution as soon as possible but the situation is very sensitive for all of us. I hope that countries outside Europe, like Russia and US will be able to find the least painful solution.
||Arrival of José Manuel Barroso, EC President
||Arrival of Andrius Ansip, Estonian Prime Minister
||Arrival of Catherine Ashton, EU High Representative and EC Vice Presiden
||Arrival of Boyko Borissov, Bulgarian Prime Minister (2 shots)
||Arrival of Demetris Christofias, Cyprus President (3 shots)
||Arrival and SOUNDBITE by Angela Merkel, German Federal Chancellor (In German) saying that: Last night we took important decisions, we made clear that if countries want to use ESM and EFSF instruments, a condionality will apply. There will be a report by the Commission, whose content will be set by a memorandum of understanding where it will follow a specific timeplan. Troika will monitor the fulfilment of the EFSF conditions and that would apply for example in case Spain or Italy participated in these programmes, a strict conditionality would apply. We have also put forward an application for the recapitalisation of Spanish banks to be included in the EFSF. When ESM is ready, the application will be transfered almost automatically but the seniority of the bonds will not be changed. Thirdly, a central European authority was decided, the Commission will make a proposal and ECB will play a role regarding banks supervision authority and in connection with the question if a bank needs recapitalization, there will be an application in the country and then ECB with the supervising authority will discuss about which instruments are necessary and to find the appropriate ones directly with the banks. But for that to happen there must be firstly a unanimity in the Council for the supervision authority, then there has to be unanimity in the ESM in order for the direct recapitalization of a bank to be possible. In this way we stay true to our schema on performance, reward, conditionality and control and I think we took an important decision.
||Arrival of Petr Nečas Prime Minister of Czech Republic (3 shots)
||Arrival and SOUNDBITE by François Hollande, French President (In French) saying that: There has been progress in 3 important topics: First of all growth, The European Council took care of the scale, 1% of GDP, I also wanted fast measures to be taken and discussion about it lasted all night long; and here again, 3 steps forward: first of all about bank recapitalization with bank supervision and a schedule. Secondly the possibility for Spain to get facilitation solutions in the short term and finally that instrument like EFSF and ESM are fully used to allow member states which made efforts to get necessary protection when it comes to interest rates.
||SOUNDBITE by François Hollande (In French) saying that:We have already made a huge step forward. First of all we have defined growth measures, which was the indispensable first step. Then, being active on the short term, finding solutions that can create liquidities, protection and facilities and at the same time finding a short and middle term overview on banking supervision amongst other things. We are preparing ourselves for the future in the best manner ever.
||Arrival of Jyrki Tapani Katainen, Finnish Prime Minister
||Arrival and SOUNDBITE by Zoran Milanovic, Croatian Prime Minister in reply of a quesiton of a journalist about the European position about Syria:
It is our cocnern, that is all I can say.
||Arrival and SOUNDBITE by Victor Ponta, Romanian Prime Minister (In Romanian)
||Arrival and SOUNDBITE by Werner Faymann, Austrian Federal Chancellor (In German) saying that: I am very happy that we were able to strengthen the stability mechanism. Nevertheless, I believe that we need middle-term banks concession for the mechanism in order for a greater recapitalization to be possible. But this decision alone is important and shows a common will for a stable Eurozone. The discussions may have been long, but they lead to an important decision.
||Arrival and SOUNDBITE by Jean-Claude Juncker, Luxembourgish Prime Minister (In Luxembourgish) saying that: We met together in order to take a coherent and consequent decision to reassure the financial markets.
||Arrival of Robert Fico, Slovakian Prime Minister
||Arrival of Helle Thorning-Schmidt, Danish Prime Minister
||SOUNDBITE by Helle Thorning-Schmidt (In English) saying that: There were big agreements, There was the Euros discussion that went on last night where I think the agreement is a very solid one and something that Italy and Spain asked for; that is a very goods thing not only for the Euro countries but also for all of us. The second one is of course the growth and jobs compact which is a firm commitment to create growth and jobs in a time when we have talked a lot about the crisis and we have now a light in the dark.
Journalist: Any worries about the Eurozone countries' agreement?
No, I think it's a very good agreement and again it shows that when the Euro countries want to commit to solutions they actually deliver.
||Arrival of Frederik Reinfeldt, Swedish Prime Minister
||Arrival and SOUNDBITE by Elio Di Rupo, Belgian Prime Minister (In French) saying that: Journalist: were you surprised by Spain and Italy last night?
Not at all, what is important is the major step taken about Euro consolidation. It is a major step for the trust put in the Euro. We have a growth and jobs compact. We have also found solution for Spain and Italy. The Euro countries also decided to create a European banking supervisor which is a major step. Si I firmly believe that we worked with the will to protect the Euro with National budgets that are under control and also long term perspectives.
||Arrival of Mark Rutte, Dutch Prime Minister (3 shots)
||Arrival of Janez Jansa, Slovenian Prime Minister (3 shots)
||Arrival of Enda Kenny, The Taoiseach of Ireland (3 shots)
||Arrival and SOUNDBITE by David Cameron, British Prime Minister (In English) saying that: I think the countries of the Eurozone did take some important steps last night, for a long time we have been said more action must be taken for short-term financial stability, recapitalizing banks, to use firewalls, to drive down bond spreads and interest rates to created greater stability. There is still much work to do and that is what we are going to do today.
||Arrival of Mario Monti, Italian Prime Minister (3 shots)
||Arrival of Mariano Rajoy, Spanish Prime Minister (3 shots)
||Arrivla of Victor Orban, Hungarian Prime Minister (3 shots)
||Arrival of Pedro Passos Coelho, Portuguese Prime Minister (3 shots)
||Arrival of Lawrence Gonzi, Maltese Prime Minister
||Arrival of Karolos Papoulias, Greek President