08 October 2012

President Barroso on the ESM and the situation in Cyprus

"We have an important European Council next week where we need to give a clear direction on the adoption by the end of the year of the Commission's proposal for the single supervisory mechanism. I believe it is critically important that we now are seen as taking concrete, important decisions because this single supervisory mechanism will then provide the trigger for the ability to have direct capitalisation of banks", said President Barroso.

He continued: "Europe is making progress in terms of building the integrated capabilities to face the crisis. Just today, in Luxembourg, the first meeting of the European Stability Mechanism Council of governors will take place, so we have this European Stability Mechanism that will be operational." He pointed out that a European Stability Mechanism of this magnitude would have been unthinkable only some years ago.

On the specific situation in Cyprus President Barroso said: "We have discussed the progress on concluding the Memorandum of Understanding … I hope that in light of our discussions we can move rapidly to reach an agreement on the measures to be taken to guarantee a long term sustainability of the Cypriot economy." He also said it is appropriate to give a message of hope to the people of Cyprus, while at the same time urging all actors in Cyprus including all different political parties and social partners to unite in their efforts. "I know that if they understand correctly how challenging the situation is, they will have the capability to overcome the current situation and also to build together with the other partners of the European Union a future of sustainable growth."

Press release

Full speech

© European Commission