Main results - Euro Summit, 14/12/2018

14 December 2018

EU leaders adopted a statement endorsing all elements of the Eurogroup report on EMU deepening, including a term sheet on the ESM reform, the terms of reference of the common backstop to the SRF and a way forward on the banking union.

Main results

EU leaders discussed the reform of the Economic and Monetary Union on the basis of a report by the Eurogroup.

They adopted a statement endorsing all elements of the Eurogroup report, including:

Leaders also gave a mandate to the Eurogroup for further work on a budgetary instrument for convergence and competitiveness for the euro area, in the context of the multiannual financial framework. 

Euro Summit statement, 14/12/2018

Remarks by President Donald Tusk after the European Council and Euro summit meetings on 14 December 2018

A year ago, we promised concrete steps to strengthen the Economic and Monetary Union. Today, leaders delivered on this promise.

First, with an agreement to create a common backstop for the Single Resolution Fund. And second, we agreed to give the European Stability Mechanism stronger powers to prevent and manage financial crises. These two decisions — which mean changing the ESM Treaty as soon as possible — significantly strengthen the monetary union. Additionally, Finance ministers will accelerate work on a Euro area budgetary instrument. Importantly, it will be adopted in an inclusive format, by all the Member States, in the context of the long-term EU budget.

Today leaders also adopted conclusions on the Single Market, climate change, migration, disinformation and the fight against racism and xenophobia. On disinformation, I want to highlight the concern among leaders that this threat to our democracies is deliberate, large-scale, and systemic. And it is not going away, but rather growing. We are determined to counter this threat. The actions proposed by the Commission and the External Action Service should be implemented immediately by the appropriate authorities, well-ahead of the European elections. [...]

Full remarks

Statement of the Euro Summit, 14 December 2018

Following the mandate given in June 2018 to the Eurogroup, the Euro Summit endorses all the elements of the Eurogroup report to Leaders on EMU deepening, which was prepared in an inclusive format. This comprehensive package paves the way for a significant strengthening of the EMU. In particular, the Euro Summit agreed today on the following.

 

  • We endorse the terms of reference of the common backstop to the Single Resolution Fund (SRF), which set out how the backstop will be operationalised, and anticipated provided sufficient progress has been made in risk reduction, to be assessed in 2020.

    1. We also endorse the term sheet on the European Stability Mechanism (ESM) reform. On that basis, we ask the Eurogroup to prepare the necessary amendments to the ESM Treaty (including the common backstop to the SRF) by June 2019.
    2. We look forward to the final adoption of the Banking Package and the non-performing loans (NPL) Prudential Backstop preserving the balance of the Council compromises. We call to advance work on the Banking Union and for ambitious progress by Spring 2019 on the Capital Markets Union, as outlined in the Eurogroup report to Leaders.
    3. In the context of the Multiannual Financial Framework (MFF), we mandate the Eurogroup to work on the design, modalities of implementation and timing of a budgetary instrument for convergence and competitiveness for the euro area, and ERM II Member States on a voluntary basis. It will be part of the EU budget, coherent with other EU policies, and subject to criteria and strategic guidance from the euro area Member States. We will determine its size in the context of the MFF. The features of the budgetary instrument will be agreed in June 2019. The instrument will be adopted in accordance with the legislative procedure, as foreseen by the Treaties, on the basis of the relevant Commission proposal to be amended if necessary.
    4. The Euro Summit takes note of the communication of the Commission on a stronger international role of the euro and encourages work to be taken forward to this end.

    Statement of the Euro Summit, 14 December 2018

    European Council conclusions on the multiannual financial framework and on external relations, 13 December 2018

     

     

     


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