The new economic governance is based on the three main responses to the crisis:

1. Reinforcing the common economic agenda with closer EU surveillance

Member States agreed economic priorities for the EU: The Europe 2020 strategy is the EU's common economic agenda. It sets out clear priorities and targets at EU and national level to boost Europe's growth over the next decade. The Annual Growth Survey (AGS) sets priority actions for the next 18 months, which are translated into national targets and measures tailored to the needs of each Member State. The Euro+ Pact sets additional commitments for the countries taking part.

2. Safeguarding the stability of the euro area

In 2010, the EU responded to the sovereign debt crisis by setting up temporary support mechanisms, which will be replaced by the permanent European Stability Mechanism (ESM) in 2013. These support measures are helping to safeguard the financial stability of the euro area. They are conditional on rigorous fiscal consolidation and reform programmes, and are developed in close cooperation with the IMF.

3. Repairing the financial sector

The EU has established new rules and agencies to address any problems earlier and make sure all financial players are properly regulated and supervised. Further work will be carried out, including the more systematic and rigorous bank stress tests currently taking place. A healthy financial sector is essential to allow businesses and households access to credit.

Full press release