President of the European Council van Rompuy: Next month's G20 meeting a turning point for world economy
29 October 2010
After the first session of the European Council, Van Rompuy stressed that the creation of a new macro-economic surveillance framework will be essential, as it will be able to detect imbalances and risks such as housing bubbles.
He highlighted the following key issues:
1. Firstly, the creation of a new macro-economic surveillance framework.
2. Second main element: a stronger Stability and Growth Pact, improving fiscal responsibility.
• Compared to the current situation, sanctions will kick in earlier and progressively.
• Public debt will be taken more into account, alongside the deficit criterion.
• Sanctions will be possible before the 3 per cent annual deficit is reached (if not enough preventive action is taken): that is totally new.
• Moreover, sanctions can be decided more easily. All this will deter bad budgetary behaviour These recommendations, as the others of the Task Force, are also extremely close to the Commission proposals.
3. Third, implement a recommendation of robust and credible permanent crisis mechanism to safeguard the financial stability of the Euro Area as a whole. Today, all Heads of State and Government agreed on that need.
© European Council
