BRUSSELS (MNI) – The following is the first Annex appended to
the Euro Summit Statement issued following the end of the meeting:

ANNEX 1

Ten measures to improve the governance of the euro area There is a
need to strengthen economic policy coordination and surveillance within
the euro area, to improve the effectiveness of decision making and to
ensure more consistent communication. To this end, the following ten
measures will be taken, while fully respecting the integrity of the EU
as a whole:

1. There will be regular Euro Summit meetings bringing together the
Heads of State or government (HoSG) of the euro area and the President
of the Commission. These meetings will take place at least twice a year,
at key moments of the annual economic governance circle; they will if
possible take place after European Council meetings. Additional meetings
can be called by the President of the Euro Summit if necessary. Euro
Summits will define strategic orientations for the conduct of economic
policies and for improved competitiveness and increased convergence in
the euro area. The President of the Euro Summit will ensure the
preparation of the Euro Summit, in close cooperation with the President
of the Commission.

2. The President of the Euro Summit will be designated by the HoSG
of the euro area at the same time the European Council elects its
President and for the same term of office. Pending the next such
election, the current President of the European Council will chair the
Euro Summit meetings.

3. The President of the Euro Summit will keep the non euro area
Member States closely informed of the preparation and outcome of the
Summits. The President will also inform the European Parliament of the
outcome of the Euro Summits.

4. As is presently the case, the Eurogroup will ensure ever closer
coordination of the economic policies and promoting financial stability.
Whilst respecting the powers of the EU institutions in that respect, it
promotes strengthened surveillance of Member States’ economic and fiscal
policies as far as the euro area is concerned. It will also prepare the
Euro Summit meetings and ensure their follow up.

5. The President of the Eurogroup is elected in line with Protocol
n14 annexed to the Treaties. A decision on whether he/she should be
elected among Members of the Eurogroup or be a full-time President based
in Brussels will be taken at the time of the expiry of the mandate of
the current incumbent. The President of the Euro Summit will be
consulted on the Eurogroup work plan and may invite the President of the
Eurogroup to convene a meeting of the Eurogroup, notably to prepare Euro
Summits or to follow up on its orientations. Clear lines of
responsibility and reporting between the Euro Summit, the Eurogroup and
the preparatory bodies will be established.

6. The President of the Euro Summit, the President of the
Commission and the President of the Eurogroup will meet regularly, at
least once a month. The President of the ECB may be invited to
participate. The Presidents of the supervisory agencies and the EFSF CEO
/ ESM Managing Director may be invited on an ad hoc basis.

7. Work at the preparatory level will continue to be carried out by
the Eurogroup Working Group (EWG), drawing on expertise provided by the
Commission. The EWG also prepares Eurogroup meetings. It should benefit
from a more permanent sub-group consisting of alternates/officials
representative of the Finance Ministers, meeting more frequently,
working under the authority of the President of the EWG.

8. The EWG will be chaired by a full-time Brussels-based President.
In principle, he/she will be elected at the same time as the chair of
the Economic and Financial Committee.

9. The existing administrative structures (i.e. the Council General
Secretariat and the EFC Secretariat) will be strengthened and co-operate
in a well coordinated way to provide adequate support to the Euro Summit
President and the President of the Eurogroup, under the guidance of the
President of the EFC/EWG. External expertise will be drawn upon as
appropriate, on an ad hoc basis.

10. Clear rules and mechanisms will be set up to improve
communication and ensure more consistent messages. The President of the
Euro Summit and the President of the Eurogroup shall have a special
responsibility in this respect. The President of the Euro Summit
together with the President of the Commission shall be responsible for
communicating the decisions of the Euro Summit and the President of the
Eurogroup together with the ECFIN Commissioner shall be responsible for
communicating the decisions of the Eurogroup.

–end of ANNEX 1–

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