12 December 2008

European Council 11-12 December

The European Council urges banks and financial institutions to make full use of the facilities granted to them, and set as a priority to implement measures to create greater stability, supervision and transparency of the financial sector.

The European Council urges banks and financial institutions to make full use of the facilities granted to them to maintain and support lending to the economy and pass on key interest rate reductions to borrowers. It should be ensured in this context that measures within the common framework, particularly guarantee mechanisms, are actually applied so as to help lower the cost of financing for financial institutions, for the benefit of enterprises and households.

 

The European Council also set as a priority to implement measures to create greater stability, supervision and transparency of the financial sector, particularly those envisaged by the ECOFIN Council road map.

 

The European Council refers in particular to the general approach found on last ECOFIN meeting (see here), and hopes that negotiations with the European Parliament ‘will lead to the rapid adoption of the legislative decisions on which the Council has agreed’. It also calls for decisions to be taken quickly on the other priority issues identified, in particular credit rating agencies, financial supervision and accounting standards.

 

The European Council finally reiterates that ‘Europe will act in a united, strong, rapid and decisive manner’ and will mobilise ‘all the instruments available’ and ‘act in a concerted manner’.

 

The European Council also approved a European Economic Recovery Plan, equivalent to about 1,5 % of the GDP of the European Union. Further issues discussed included the Lisbon Treaty, the European Security and Defence Policy, and reached agreement on the energy/climate change package.

 

Background note

Council conclusions (English)

Council conclusions (French)

 

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