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Strengthening the banking system
The agreement on the SSM strikes a good balance. It serves the need of eurozone members, whilst being open to all and taking into account those that choose not to take part. It is a truly single system, with a sensible division of labour between the ECB and national authorities.
Regarding the ECB, it ensures a clear separation between monetary policy and supervisory tasks. And finally, it preserves the integrity of the single market for financial services. But we do not stop here; we are already looking at the next steps: it's essential for the eurozone's future.
We agreed to establish in the first half of next year an operational framework, including the definition of legacy assets, so that when the SSM is established, the European Stability Mechanism will have the possibility to recapitalise banks directly, following a regular decision.
For the SSM to be more effective, we decided tonight that when the SSM is in place, "a single resolution mechanism will be required, with the necessary powers to ensure that any bank in participating Member States can be resolved with the appropriate tools". In the course of 2013, the Commission will submit a proposal, which should be examined as a matter of priority, with the intention of adopting it in the current parliamentary cycle. The objective is to reduce risks for taxpayers and for the economy, by making sure that any bank failures are dealt with in a swift and orderly way and in the best interest of all.
Bringing economic policies closer
As President of the European Council, I will present possible measures and a time-bound road map on four issues to the June 2013 European Council, in close cooperation with the President of the Commission, and after a process of consultations with the Member States.
These four issues are:
All this is not an end in itself: our overarching aim is a stable EMU, in order to improve growth, competitiveness and employment across Europe.