Press conference by José Manuel BARROSO, President of the EC, and Herman VAN ROMPUY, President of the European Council
Lieu: Brussels, Belgium - EC/Berlaymont
End production: 19/10/2012 First transmission: 19/10/2012
On 18 October, Brussels, Heads of State or Government were gathering in Brussel to focus on economic and monetary policies. The European Council discussed an interim report prepared by President Herman Van Rompuy, in close cooperation with the presidents of the Commission, the Eurogroup and the European Central Bank, on the further development of Economic and Monetary Union (EMU). In June, the European Council called on the four presidents to develop a "specific and time-bound roadmap" for completing EMU. The interim report builds on ideas put forward during bilateral meetings held in September with the member states and the European Parliament. It highlights both points of convergence and areas that will require further work for the final report due in December. Heads of state and government also discuss pending legislation, in particular a proposal for the establishment of a single supervisory mechanism for the banking industry, with a view to providing an impulse to ongoing work on these dossiers. The implementation should be effective in January 2013.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of José Manuel Barroso, President of the EC, and Herman Van Rompuy, President of the European Council
||Arrival of the speakers to the press room
||SOUNDBITE (in English) by Herman Van Rompuy, President of the European Council:Let me start with the banking sector. In June, we agreed to break the vicious circle between banks and sovereign. The urgent element now is setting up a single supervisory mechanism to prevent banking risks and cross border contagion from emerging. And that is why the European Council calls tonight for swift progress. With the objective of agree on the legislative framework by the first of January 2013.
||Cutaway of a photographer
||SOUNDBITE (in English) by Herman Van Rompuy:
The ESM will be build and implement with the integrity of the single market for financial services in mind. And finally it should be inclusive and transparent and all Member States are free and invited to join.
||Cutaway of journalists
||SOUNDBITE (in English) of José Manuel Barroso, President of the EC: Today we have discussed the main open issues on the adoption of the Single Supervisory Mechanisme The European Council has confirmed the key principles. We will now work to finalise agreement on the legislative framework before the end of the year.
The European Central Bank will have a fundamental role so a clear separation of supervisory and monetary functions is essential. The new supervisor will be able to intervene, if needed, with any bank in the euro area; it will be as inclusive as legally possible for non-euro area member states who want to join and the integrity of the Single Market will be respected.
Delivering this will enable us to honour the 29 June agreement of the Euro Area summit on direct recapitalisation of banks. Tonight we confirmed what we agreed in June and I now expect Finance Ministers to follow the position of the Heads of State and Government and work to complete the technical details as quickly as possible.
||Cutaway of audience
||SOUNDBITE (in English) of José Manuel Barroso: To deliver lasting results, we need to develop a fully equipped Community economic governance together with a genuine, credible fiscal capacity. We need a stronger and more binding framework for the implementation of key economic policies, in particular in the euro area, as the only way to prevent imbalances. While much has been done here, for instance through the six-pack and the Country-Specific Recommendations, further steps are crucial to combine specific conditions with specific incentives and to really make the economic and monetary union sustainable
||Cutaway of journalists
||On Greece, I believe the euro area Heads of State and Governments' statement on Greece is indeed a very important document that was approved in today's meeting