TEXT-Statement by euro zone leaders after summit

BRUSSELS, May 7 (BestGrowthStock) – Following is the full text of a
statement released on Friday by euro zone leaders on ways to
ensure financial stability in the euro area.

STATEMENT OF THE HEADS OF STATE OR GOVERNMENT OF THE EURO AREA

1/ Implementation of the support package for Greece

In February and in March, we committed to take determined
and coordinated action to safeguard financial stability in the
euro area as a whole.

Following the request by the Greek government on April 23
and the agreement reached by the Eurogroup on May 2, we will
provide Greece with 80 billion euros in a joint package with the
IMF of 110 billion euros. Greece will receive a first
disbursement in the coming days, before May 19.

The programme adopted by the Greek government is ambitious
and realistic. It addresses the grave fiscal imbalances, will
make the economy more competitive, and will create the basis for
stronger and more sustainable growth and job creation.

The Greek Prime Minister has reiterated the total commitment
of the Greek government to the full implementation of these
vital reforms.

The decisions we are taking reflect the principles of
responsibility and solidarity, enshrined in the Lisbon Treaty,
which are at the core of the monetary union.
2/ Response to the current crisis

In the current crisis, we reaffirm our commitment to ensure
the stability, unity and integrity of the euro area. All the
institutions of the euro area (Council, Commission, ECB) as well
as all euro area Member States agree to use the full range of
means available to ensure the stability of the euro area.

Today, we agreed on the following :

– First, consolidation of public finances is a priority for
all of us and we will take all measures needed to meet our
fiscal targets this year and in the years ahead in line with
excessive deficit procedures. Each one of us is ready, depending
on the situation of his country, to take the necessary measures
to accelerate consolidation and to ensure the sustainability of
public finances. The situation will be reviewed by the Ecofin
Council on the basis of a Commission assessment by the end of
June at the latest. We have asked the Commission and the Council
to strictly enforce the recommendations addressed to Member
States under the Stability and Growth Pact.

– Second, we fully support the ECB in its action to ensure
the stability of the euro area.

– Third, taking into account the exceptional circumstances,
the Commission will propose a European stabilization mechanism
to preserve financial stability in Europe. It will be submitted
for decision to an extraordinary ECOFIN meeting that the Spanish
presidency will convene this Sunday May 9th.
3/ Strenghtening economic governance

We have decided to strengthen the governance of the euro
area. In the context of the Task Force headed by the President
of the European Council, we are prepared to :

– broaden and strengthen economic surveillance and policy
coordination in the euro area, including by paying close
attention to debt levels and competitiveness developments;
-reinforce the rules and procedures for surveillance of euro
area Member States, including through a strengthening of the
Stability and Growth Pact and more effective sanctions;

– create a robust framework for crisis management,
respecting the principle of Member States’ own budgetary
responsibility.

The President of the European Council decided to accelerate
the work of the Task Force. The Commission will present its
proposals next week on May 12.
4/ Regulation of the financial markets and the fight against
speculation

Finally, we agreed that the current market turmoil
highlights the need to make rapid progress on financial markets
regulation and supervision. Increasing transparency and
supervision in derivatives markets and dealing with the role of
rating agencies are among the key priorities for the EU. We also
agreed on intensifying the work on crisis management and
resolution in the financial sector and on a fair and substantial
contribution of the financial sector to the costs of crises. The
work on assessing whether more steps are necessary in view of
recent speculation against sovereign debtors should be sped up.
The President of the European Council therefore intends to
discuss these issues at the June European Council, on the basis,
where needed, of Commission proposals.

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TEXT-Statement by euro zone leaders after summit