I. ECONOMIC POLICY
1. The European Council welcomed the report presented by its President following up on its conclusions of 28 and 29 October 2010. It agreed that the Treaty should be amended in order for a permanent mechanism to be established by the Member States of the euro area to safeguard the financial stability of the euro area as whole (European Stability Mechanism).
This mechanism will replace the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM), which will remain in force until June 2013. As this mechanism is designed to safeguard the financial stability of the euro area as whole, the European Council agreed that Article 122(2) TFEU will no longer be needed for such purposes. Heads of State or Government therefore agreed that it should not be used for such purposes.
2. The European Council agreed on the text of the draft decision amending the TFEU set out in annex I. It decided to immediately launch the simplified revision procedure provided for in Article 48(6) TEU. The consultation of the institutions concerned should be concluded on time to allow the formal adoption of the decision in March 2011, completion of national approval procedures by the end of 2012, and entry into force on 1 January 2013.
3.The European Council also called for Finance Ministers of the euro area and the Commission to finalise work on the intergovernmental arrangement setting up the future mechanism by March 2011, integrating the general features set out in the Eurogroup statement of 28 November 2010, which the European Council endorsed (annex II). The mechanism will be activated by mutual agreement of the euro area Member States in case of risk to the stability of the euro area as a whole.
4. Member States whose currency is not the euro will, if they so wish, be involved in this work. They may decide to participate in operations conducted by the mechanism on an ad hoc basis.
5. The European Council called for the acceleration of the work on the six legislative proposals on economic governance, building on the recommendations of the Task Force endorsed last October and keeping a high level of ambition, so that they can be adopted by June 2011. It welcomed the Council's report on the treatment of systemic pension reform under the Stability and Growth Pact and called for the report to be reflected in the specifications on the implementation of the reformed SGP.
6. Recalling its conclusions of October 2010, the European Council looked forward to the Commission's intention to make proposals for the new multiannual financial framework by June 2011 and invited the institutions to cooperate in order to facilitate its timely adoption.
7. The new Europe 2020 strategy for jobs and growth will continue to guide the Union and the Member States in responding to the crisis and promoting the delivery of structural reforms.
The European Council welcomed the progress achieved since the launch of the strategy, as shown in the report presented by the Presidency.
8. The European Council welcomed the Statement by the Heads of State or Government of the euro area and the EU institutions (annex III).
© European Council
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