Raadsvoorzitter Van Rompuy: De EU heeft veel bereikt (en)

EUROPEAN COUNCIL THE PRESIDT

Brussels, 17 December 2012

EUCO PRESSE 541 PR PCE 202

Speech by President of the European Council Herman Van Rompuy i at the European Parliament

Overall, last week was a good one for the European Union — one to be remembered

On Monday we were in Oslo. On Wednesday and Thursday, the Finance Ministers met the deadline set by the European Council, and agreed on the proposal for a Single Supervisory Mechanism for banks, ready to discuss with your parliament. It is a keystone in the building block of the Banking Union. On Thursday, a decision was taken on Greece, setting it on a sustainable course for recovery and showing that the Eurozone i with 17 is here to stay. On Thursday and Friday, we had a constructive discussion in the European Council on the way forward for the Eurozone, focussing on two areas where further steps, beyond what has been agreed already, could and will be taken

First, strengthening our banking system. Here the progress achieved on the establishment of the SSM marks a breakthrough. It will strengthen our financial sector. If we had had this level of supervision ten years earlier, the financial crisis would never have been so severe

We achieved this in the space of just a few months. Back in June, there was nothing. Then, on the basis of the first report of the four presidents, the European Council set out the course. Right after the summer, the Commission had proposals ready. Within three months the finance ministers reached an agreement, while the Parliament has already adopted its position on this question at committee level and is ready to take the legislative procedure forward to a conclusion

Back in June we asked ministers to reach agreement on the details of the SSM by December, and they delivered. This shows that the Union does, when it wants, have the ability to take timely and decisive action — a crucial test of our credibility!

P R

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The agreement by all 27 Member States on the SSM strikes a good balance. It serves the need of eurozone i members, whilst being open to all, and taking into account those that choose not to take part. It is a single system, but with a sensible division of labour between the ECB and national authorities. Regarding the ECB, it ensures a clear separation between monetary policy and supervisory tasks. And, finally, it preserves the integrity of the single market for financial services

But we do not stop here. We are already looking at the next steps: they are also essential for the Eurozone's future

As you know, these were looked at on the basis of the report that I prepared together with Presidents Barroso, Draghi and Juncker. This paper builds on the interim report presented last October and takes account of the important input provided by the Commission in its "Blueprint", and by the Parliament, in particular your reports on the EMU architecture and the SSM (both Thyssen reports). Indeed, I exchanged views with the rapporteur Ms Thyssen and the chair of the Employment and Social Affairs Committee Ms Pervenche Beres

The European Council agreed to establish in the first half of next year an operational framework, including the definition of legacy assets, so that when the SSM is effectively established, the European Stability Mechanism will have the possibility to recapitalise banks directly, following a regular decision

For the SSM to be more effective, we decided, on the basis of the report of the four presidents, that when the SSM is in place, "a single resolution mechanism will be required, with the necessary powers to ensure that any bank in participating Member States can be resolved with the appropriate tools". In the course of 2013, the Commission will submit a proposal, which should be examined as a matter of priority, with the intention of adopting it in the current parliamentary cycle. The objective is to reduce risks for taxpayers and for the economy, by making sure that any bank failures are dealt with in a swift and orderly way and ultimately financed by the financial sector itself. It will be another major step forward

This brings me, after the progress on the banking union, to the second area on which we focused: bringing the economic policies of Eurozone countries closer together. The starting point is simple: economic policies are a matter of common interest, and a vital interest for countries that share a common currency. We can't have one currency and 17 diverging policies. Some of our Member States were badly governed for years and hesitated far too long to act

So, as President of the European Council, I will present possible measures and a time-bound road map on four issues to the June 2013 European Council, in close cooperation with the President of the European Commission, and, of course, a process of consultations

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These four issues are:

the coordination of major economic reforms in the Member States, including through ex ante discussions

the social dimension of the EMU, which will include the social dialogue

the feasibility and modalities of mutually-agreed contracts for competitiveness and growth between governments and EU institutions

and finally, solidarity mechanisms that can enhance the efforts made by the Member States that enter into such contractual arrangements

All this is not an end in itself: our overarching aim is a stable EMU, in order to improve growth, competitiveness and employment across Europe. We can only survive in the global economy if we are competitive. Ultimately, it is the performance of the real economy that will guarantee a stable euro — many who focus just on financial instruments forget this

And we all agree that in this process we must ensure that democratic legitimacy and accountability are fully promoted at the level at which decisions are taken and implemented. The views of the European Parliament on this matter are of course of major relevance here

All in all, it is clear that, even if the worst of the crisis — in terms of a threat to the very existence of the euro — is behind us, much still needs to be done. But the hard work that has been done already is starting to pay off. The sharp decrease in the famous 'spreads' is an encouraging signal. Confidence in the currency is a precondition for a return of confidence of consumers and companies. Of course, this takes time, and the impact on jobs even more so. But stability is indispensible for recovery

A lot has been achieved over the course of a year. Exactly twelve months ago the six-pack entered into force. This year, we agreed the Fiscal Compact, we launched the European Stability Mechanism, Member States embarked on ambitious reforms — a determining factor in the return to stability. The ECB, for its part, also contributed to taming the crisis and we have rounded off the year with the decisions I have just described on banking supervision and resolution as well as on Greece

I have said it before and I will say it again: our progress is inevitably step by step, but those steps keep coming. Our Union lacked the tools needed to deal with an economic crisis of this magnitude. Those tools had to be designed, agreed, approved, and sometimes ratified by Member States. There are still understandable complaints that the Union proceeds too slowly, and that some of its Member States hesitated too long to take action to reform their economies. But we persevere, and we will succeed. I have always the long term in mind knowing that gradualism is the golden rule of the Union "toutpar ondulation rien par chock" Be confident that I remain ambitious

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This meeting of the European Council also addressed other issues. We had a good discussion on our Common Security and Defence Policy. It's been a while - in fact since 2008 - since this issue was discussed at the level of the European Council

There are several reasons why I wanted to bring it back on our agenda. For one thing, the security challenges that Europe faces have increased over the last few years. Our countries are being called upon to assume more responsibility in the maintenance of peace in our neighbourhood and beyond. Also, recent crisis operations, including in Libya, have revealed certain gaps that we need to plug. And of course, the economic context makes it even more pressing to develop capabilities in the most cost-effective way

Before the summer, I already announced my intention to devote the December 2013 European Council to these questions. The purpose of this discussion was to set into motion our preparations and a direction for our work. In practical terms, we have invited the High Representative and the European Commission to develop proposals. On the basis of this work, and after consultations with Member States, I will present recommendations to the European Council in December 2013

We also had a substantial discussion on the deteriorating situation in Syria, a situation by which we are appalled. We requested the Foreign Affairs Council to work on all options to support and help the opposition and to enable greater support for the protection of civilians. We stressed the need for a political transition towards a future without President Assad and his illegitimate regime. We support a future that is democratic and inclusive, with full support for human rights and the rights of minorities

So, to conclude, this was a positive week for the Union, whilst remaining fully aware of the social and economic problems we still face. Everything that we undertake has, as its ultimate aim, to overcome recession and unemployment. There are more reasons to be more hopeful than a few weeks ago, but there is a long way to go, in the Union, in the Eurozone and in our Member States

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