04 December 2012

VP Rehn's remarks at the ECOFIN Press Conference

Rehn commented primarily on the two-pack and the SSM, two proposals he said were of fundamental relevance in restoring confidence and laying the foundations for a deep and genuine EMU.

"First, ministers concurred that an agreement on the so-called two-pack to reinforce further economic governance is very close. These two Regulations will be essential foundations of the rebuilding of EMU, as explained in the Blueprint presented by the Commission last week. Their adoption will be a vital step towards a more integrated budgetary framework, with stronger policy coordination and further sharing of fiscal sovereignty. The Commission will continue to work tirelessly for a final agreement, and I want to encourage both the Council and the European Parliament to do everything possible to put in place these building blocks for the deep and genuine economic and monetary union that we want to construct together.

Second, there was good progress in the discussion concerning the Single Supervisory Mechanism for euro area banks, which will now be taken forward when the ECOFIN reconvenes next Wednesday. In the absence of my colleague Michel Barnier, let me say that the Commission considers that all the elements for an agreement are to be found in the Presidency compromise and in the report of the Parliament's Economic and Monetary Affairs Committee. The Single Supervisory Mechanism will be the cornerstone of a full banking union, which in turn is a key part of a stronger Economic and Monetary Union. That’s why it is of paramount importance that an agreement is reached by the end of the year. This is indeed a test that Europe cannot afford to fail – and one that Europe must be more than capable of passing.

Let me also underline that the rebuilding of EMU is certainly not an abstract concept – on the contrary, restoring confidence in the sustainability of the euro area has a very direct bearing on investors’ perceptions, and thus on growth and jobs. The dwindling numbers of those who still believe in the reversibility of the euro, along with the steady easing of market tensions since the summer, testify to the impact of the policy decisions Europe has taken in the last couple of months."

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