19 October 2012

European Council - 18/19 October 2012 - Conclusions

It closely reviewed the implementation of the Compact for Growth and Jobs. It welcomed progress made so far but also called for swift, determined and result-orientated action to ensure its full and rapid implementation.

Further to the presentation of the interim report on EMU, the European Council called for work to proceed on the proposals on the Single Supervisory Mechanism as a matter of priority with the objective of agreeing on the legislative framework by 1st January 2013 and agreed on a number of orientations to that end. It also took note of issues relating to the integrated budgetary and economic policy frameworks and democratic legitimacy and accountability which should be further explored. It agreed that the process towards deeper economic and monetary union should build on the EU's institutional and legal framework and be characterised by openness and transparency towards non-euro area Member States and respect for the integrity of the Single Market. It looked forward to a specific and time-bound roadmap to be presented at its December 2012 meeting, so that it can move ahead on all essential building blocks on which a genuine EMU should be based.

I ECONOMIC POLICY

1. The European economy is facing difficult challenges. It is therefore essential for the European Union to make every effort rapidly to implement the measures agreed over recent months to relaunch growth, investment and employment, restore confidence and make Europe more competitive as a location for production and investment.

Compact for Growth and Jobs

2. The European Council remains determined to stimulate growth and jobs, in the context of the Europe 2020 Strategy. The Compact for Growth and Jobs, decided last June, constitutes the overall framework for action at national, euro and EU levels, mobilising all levers, instruments and policies. All the commitments it outlines must be fully and rapidly delivered.

Significant progress has been achieved so far, as shown in the letter from the President of the European Council of 8 October 2012 as well as in the reports from the Presidency and the Commission. However, greater efforts are required in certain areas:

(a) Investing in growth: significant progress is being made in implementing the €120 billion financing package of the Compact. In particular, in the coming weeks the EIB is expected to adopt its €10 billion capital increase with the aim of strengthening its capital basis as well as increasing its overall lending capacity by €60 billion. This should in turn lead to additional investment of up to €180 billion over the next three years. Work is under way to ensure that the €55 billion of Structural Funds are mobilised quickly and efficiently; the Commission will continue to help Member States to re-programme the Structural Funds to focus them better on growth and jobs.

Adequate attention should be paid in order to ensure a fair access to financing for all Member States. The Project Bonds pilot phase is being implemented with €100 million already authorised and the remaining €130 million to be mobilised early next year, which in total should leverage investment of up to €4.5 billion in the pilot phase. The European Council will devote a special meeting in November to reaching agreement on the next Multiannual Financial Framework and thus ensure that it is adopted by the end of the year. Recalling the need to pursue differentiated growth-friendly fiscal consolidation, the European Council looks forward to the Commission's report on the quality of public spending and the scope for possible action within the boundaries of the EU and national fiscal frameworks.

(h) Developing a tax policy for growth: work and discussions should be carried forward on the proposals on energy taxation, on the common consolidated corporate tax base and on the revision of the savings tax Directive, and to reaching rapid agreement on the negotiating directives for savings taxation agreements with third countries. The European Council looks forward to the Commission communication to be submitted before the end of the year on good governance in relation to tax havens and aggressive tax planning. The European Council notes the requests from a number of Member States for enhanced cooperation to be launched on a Financial Transactions Tax, which the Commission intends to examine quickly with a view to making its proposal as soon as the conditions have been met.

(j) Implementing the Europe 2020 Strategy: the European Council recalls the need for determined implementation of the 2012 Country Specific Recommendations. It invites the Presidency to submit a "synthesis report" on the lessons learned from the 2012 European Semester process and calls for a number of improvements to be made for the 2013 exercise - more emphasis on specific guidance and implementation; new modalities to enhance Member States' ownership of the process, particularly through deeper and more continuous dialogue; building of a partnership with the European Parliament, national parliaments and social partners; and a stronger linkage between the work of relevant Council formations. Underlining the need for thorough preparation of the 2013 European Semester, the European Council looks forward to the early submission by the Commission of its Annual Growth Survey and the Alert Mechanism Report at the end of November, and invites the incoming Presidency to submit a roadmap on the organisation of work for the 2013 European Semester.

Full Council Conclusions

Council Conclusions on completing EMU, 18.10.12

EuroparlTV, 18.10.12

© European Council