European Council: extracts from the press conference by José Manuel BARROSO, President of the EC, and Herman VAN ROMPUY, President of the European Council
Lieu: Brussels, Belgium - Council / Justus Lipsius
End production: 13/12/2012 First transmission: 13/12/2012
Talking to journalists after the first session of the European Council, Herman Van Rompuy and José Manuel Barroso, the Presidents of the European Council and of the European Commission, welcomed the European Union leaders' pressing for a June 2013 agreement on how to handle failing banks and how to set minimum standards for deposit guarantee schemes.
The European Council also agreed to establish a single resolution mechanism and called for the European Commission to submit in 2013 a proposal for nations that take part in common bank supervision.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||General view of the press conference room
||SOUNDBITE (English) by Herman Van Rompuy, President of the European Council, saying that the Council agreed to establish in the first half of next year an operational framework, including a definition of legacy assets, so that, when the Single Supervisory Mechanism (SSM) is established, the European Stability Mechanism will have the possibility to re-capitalize the banks directly. For the SSM to be more effective, the Council decided tonight that, when the SSM is in place, a single resolution mechanism will be required with the necessary powers to ensure that any bank in participating Member States can be resolved with the appropriate tools.
||Cutaway of photographer
||SOUNDBITE (English) by José Manuel Barroso, President of the EC, saying that the SSM is the key in the construction of the banking union. The EU will not tolerate poor supervision for any of the 6000 banks in the euro area. There is now the possibility for the ECB to step in and directly supervise any of them, so that banks in difficulty are restructured or closed. The first piece of the banking union is agreed, subject to the formal approval of the European Parliament. The next steps should be a swift conclusion on the bank capital rules and the harmonisation of national bank resolution and deposit guarantee schemes in early 2013. The Commission has already tabled some months ago proposals precisely on that.
||Cutaway of press
||SOUNDBITE (English) by Herman Van Rompuy saying that Member States still have to discuss the modalities of the contractual arrangements on how to enhance growth, competitiveness and out it in some kind of mutually agreed contract between the EU institutions and the Member States. It is a negotiation. Agreement is needed on both sides.
||SOUNDBITE (English) by José Manuel Barroso saying that Member States decided today to concentrate on the more urgent things, namely the single resolution mechanism that was agreed in principle. Now the Commission will come with a formal proposal. There was also a general agreement on the contractual arrangements, and associated with them the elements of fiscal capacity. But the Heads of State or Government preferred tonight to focus their priority on what can be the next steps, while not closing the doors to other ideas that are either in the four Presidents' report or in the Commission's Blueprint.