The current crisis calls for concerted action at both the European and the international level. The EU has taken a series of bold measures to restore confidence, stability and sustainability in the financial markets.
24 - 25 September 2009
G-20 Leaders pledged to sustain their strong policy response until durable recovery and renewed job creation was secured. They also agreed to continue developing cooperative and coordinated exit strategies with policy measures to be implemented depending on varied national needs.
Launching a framework for strong, sustainable and balanced growth, Leaders committed themselves to a new cooperative process of shared policy objectives to coordinate their national policy frameworks with the assistance of the IMF.
As to binding remuneration rules for bonuses for bank managers, Leaders endorsed the implementation standards of the Financial Stability Board (FSB) aimed at aligning compensation with long-term value creation without excessive risk-taking.
>> Leaders' statement: The Pittsburgh summit
>> President Barroso. Statement on the results of the G20 meeting
>> G20 Summit, Pittsburgh
25 September 2009
Commission report on the economic crisis in Europe
The report states that although signs of improvement have appeared recently, recovery remains uncertain and fragile and new policy challenges must be faced.
>> Economic and Financial Affairs. The Commission publishes a report on the economic crisis in Europe
23 September 2009
Financial supervision package. Proposal on a European Systemic Risk Board. Regulation on banking, insurance and securities supervision
The Commission's legislative proposals establish the first EU wide system of supervision. Through the creation of a European Systemic Risk Board (ESRB) and through a European System of Financial Supervisors (ESFS), the Commission addresses the weaknesses and shortcomings of the current supervisory structure in Europe both at macro- and micro-prudential supervision levels.
>> Economic and Financial Affairs. New legislative proposals to strengthen financial supervision in Europe
>> Internal Market. Financial services supervision and Committee architecture
17 September 2009
Informal European Council
EU leaders defined their position for the G20 summit in Pittsburgh with a list of 28 concrete demands.
Agreed demands included to continue coordinated policy measures to develop sustainable growth and prevent a repetition of the financial crisis. Agreement to formulate now exit strategies phasing out stimulus measures was coupled with the demand to implement them only when economic recovery would be secured.
Further demands included calls for strengthened global macroeconomic coordination with an IMF central role, more trade liberalisation, a global financial market reform, global macro-prudential supervision and binding remuneration rules for bonuses for bank managers. Such variable remunerations should be better linked with sound risk management and long-term performance.
In addition, leaders voiced their support for strengthening the International Monetary Fund and other international financial institutions (IFIs).
>> Agreed language of the EU Heads of State or Government
14 September 2009
EU Interim economic forecast
The Commission published its latest interim economic forecasts on 14 September 2009. The underlying message is that signs for an economic recovery are apparent, also thanks to strong policy interventions, but the sustainability of the recovery remains to be tested.
The Commission sees signs of an imminent economic recovery and fears of a prolonged and deep recession are fading. GDP growth is set to turn positive in the second half of the year. However, the forecast for 2009 as a whole remains unchanged as the previous estimates for 2008 and the first quarter of 2009 proved weaker. GDP is expected to fall by 4% in both the EU and the euro area this year.
>> Economic and Financial Affairs. EU interim forecast: coming out of the recession but uncertainty remains high
4 - 5 September 2009
G-20 Meeting of finance ministers and central bank governors, London
Ahead of the Pittsburgh Summit, ministers and governors assessed the progress in delivering the Global Plan for Recovery and Reform and agreed to further actions to ensure sustainable growth and build a stronger international financial system.
>> Communiqué of 5 September 2009
3 September 2009
European Central Bank (ECB) confirms low interest rates
The Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.00%, 1.75% and 0.25% respectively.
>> ECB. Monetary policy decision
1 - 2 September 2009
Meetings of finance ministers - Eurogroup and ECOFIN
The meetings were convened to prepare the G-20 finance ministers meeting taking place on 4-5 September, itself a preparation of the G-20 Summit in Pittsburgh on 24-25 September.
The main purpose of the Pittsburgh meeting would be to assess progress in meeting commitments made at the London summit of 2 April 2009, notably as regards reforming financial market regulation. The G-20 would also discuss the macroeconomic situation and future global growth model in the light of the origins and consequences of the economic and financial crisis.
>> Memo IP/09/369. Preparation of Eurogroup and Informal Economic and Finance Ministers Council, Brussels, 2 September 2009