- Rules in excessive deficit procedure t0 be reinforced for euro zone member states
- Sanctions must be imposed on rule-breakers automatically unless opposed by qualified majority vote
- Possibility of moving toward common euro zone debt issuance in longer term to be considered
- Intends to bring forward ESM bailout mechanism to July 2012
- Existing EFSF fund to remain active until mid-2013
- Permanent ESM to have EUR 500 bln maximum lending cap
- Non-unanimous voting rule for emergency procedures involving ESM
- ESM to be allowed to directly recapitalize banks
- ESM to be given banking license
Keep in mind, this is a draft. Ahead of the summit, Germany remain opposed to having the EFSF and the ESM run concurrently.
