EU adopts measures to tackle financial crisis in the Eurozone

[News_Editor]

EU adopts measures to tackle financial crisis in the Eurozone

2011-03-25 23:38:53 GMT+7 (ICT)

BRUSSELS (BNO NEWS) -- The European Council on Friday adopted a comprehensive package of measures to respond to the financial crisis in the Eurozone and ensure lasting stability.

The measures adopted are aimed at preserving financial stability and laying the ground for smart, sustainable, socially inclusive and job-creating growth. In addition, the package will strengthen the economic governance and competitiveness of the European Union.

"We have agreed a course of action with clear priorities for economic policy, where Member States take clear commitments to strengthen fiscal discipline, financial stability, competitiveness, employment and growth," said José Manuel Durão Barroso President of the European Commission.

The Commission will present proposals and recommendations specific for each country for their adoption before the June European Council. Member States will translate these into concrete measures to be included in their Stability or Convergence Programs and National Reform Programs.

"The ball is now firmly in the court of the Member States. It is now up to them to present ambitious national reform programs implementing the Europe 2020 goals by the end of April," added Barroso.

Member States agreed to implement measures in order to make work more attractive; help unemployed people getting back to work; attract private capital to finance growth; boost research and innovation; combat poverty and promote social inclusion; and invest in education and training.

The Council also agreed on an effective backstop mechanism, the European Stability Mechanism (ESM), to guarantee the stability of the euro area. This mechanism will be able to provide assistance of up to €500 billion ($705.33 billion) and will replace the temporary European Financial Stability Facility (EFSF).

On Thursday, the Council adopted the Euro Plus Pact which will provide a new quality of economic policy coordination for 17 EU countries and joined by Bulgaria, Denmark, Latvia, Lithuania, Poland, Romania.

This pact will further strengthen the economic pillar of Economic and Monetary Union (EMU) and achieve a new quality of economic policy coordination, with the objective of improving competitiveness and leading to a higher degree of convergence in the Eurozone market economy.

"We concluded the Euro Plus Pact. I welcome that six non euro countries will join it. Furthermore a number of colleagues already announced this morning their concrete commitments under the pact," said Herman Van Rompuy, President of the European Council.

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