EU leaders agreed on measures to restore confidence in the economy, invest more in growth and establish a stronger union at their 28-29 June summit.
“This European Council has delivered what our citizens, our international partners and the markets have been asking for,” said Commission president José Manuel Barroso.
Eurozone countries endorsed common supervisory oversight of their banks involving the European Central Bank (ECB) – a key step to restoring stability.
The eurozone’s bailout fund would also be allowed to directly help refinance troubled banks. Currently, governments must ask the fund for loans and then in turn loan the money to their banks.
National governments asked Council president Herman Van Rompuy to develop a plan for closer economic and monetary union in collaboration with the presidents of the Commission, the Eurogroup and the ECB.
The plan would include common rules for supervising the financial sector, keeping national budgets within agreed limits and closer economic policy coordination.
More growth stimulus
The EU as a whole agreed on a compact for growth and jobs, with plans to invest €120bn in economic stimulus.
The funds include additional capital for the European Investment Bank, which will expand its overall lending capacity by €60bn. The bank will use funds for projects that develop innovation and skills, small businesses, clean energy and modern infrastructure across the EU.
The EU will invest about €5bn in project bonds, which will be used to co-finance the construction of transport, energy and broadband infrastructure.
Another €55bn will be redirected from unused EU regional funds to support small businesses and create jobs for young people.
More growth measures
EU leaders endorsed the Commission's country-specific recommendations on economic policy and budget priorities over the next 12 months.
They agreed on the final steps for a unitary patent-protection system so inventors would need to register only one patent covering participating EU countries – reducing costs and red tape.
Leaders condemned the violence in Syria and called on all sides to follow a UN peace plan. They urged Iran to comply with its international obligations relating to its nuclear programme. The EU’s oil embargo on the country began on 1 July 2012.
They also agreed to start EU membership negotiations with.