BRUSSELS (MNI) – The following is the list of “main results of the
Summit” released after the end of the Euro Summit:
Main results of Euro Summit
The euro is at the core of our European project of peace, stability
and prosperity. We agreed today on a comprehensive set of measures to
restore confidence and address the current tensions in financial
markets. These measures reflect our unwavering determination to overcome
together the current difficulties and to take all the necessary steps
towards a deeper economic union commensurate with our monetary union.
Today we agreed on the following:
1. An agreement that should secure the decline of the Greek debt to
GDP ratio with an objective of reaching 120% by 2020. Euro area Member
States will contribute to the PSI package up to 30 bn euro. The nominal
discount will be 50% on notional Greek debt held by private investors. A
new EU-IMF multiannual programme financing up to 100 bn euro will be put
in place by the end of the year. It will be accompanied by a
strengthening of the mechanisms for the monitoring of implementation of
the reforms.
2. The significant optimisation of the resources of the EFSF,
without extending the guarantees underpinning the facility. The options
agreed will allow the EFSF resources to be leveraged. The leverage
effect of both options will vary, depending on their specific features
and market conditions, but could be up to 4 or 5, which is expected to
yield around 1 trillion euro (around 1.4 trillion dollar). We call on
the Eurogroup to finalise the terms and conditions for the
implementation of these modalities in November. In addition, further
cooperation with the IMF will be sought to further enhance the EFSF
resources.
3. A comprehensive set of measures to raise confidence in the
banking sector by (i) facilitating access to term-funding through a
coordinated approach at EU level and (ii) the increase in the capital
position of banks to 9% of Core Tier 1 by the end of June 2012. National
supervisors must ensure that banks’ recapitalisation plans do not lead
to excess deleveraging.
4. An unequivocal commitment to ensure fiscal discipline and
accelerate structural reforms for growth and employment. Particular
efforts are being deployed by Spain. New strong commitments on
structural reforms have been made by Italy. Portugal and Ireland will
continue their reform programmes with the support of our crisis
mechanisms.
5. A significant strengthening of economic and fiscal coordination
and surveillance. A set of very specific measures, going beyond and
above the recently adopted package on economic governance, will be put
in place.
6. Ten measures to improve the governance of the Euro area.
7. A mandate to the President of the European Council, in close
collaboration with the President of the Commission and the President of
the Eurogroup, to identify possible steps to strengthen the economic
union, including exploring the possibility of limited Treaty changes. An
interim report will be presented in December 2011. A report on how to
implement the agreed measures will be finalised by March 2012.
–end of Summit list of accomplishments–
[TOPICS: M$X$$$,M$Y$$$,MGX$$$,MT$$$$,M$$CR$]