We can see a vicious circle established in Europe today when struggling banks stop lending to the economy, making it slow down and needing to be bailed out by taxpayers' money. This puts additional burden on countries and their budgets. "We can break this negative cycle now if we are bold enough to establish a strong and integrated financial framework", said the President. He added that this framework should include a single rulebook, a single European banking supervision, a common deposit insurance and a resolution framework.
"Our starting point should be the 27 Member States. But we must recognise that some countries do have opt outs. These opt outs must be taken into appropriate account in the future architecture. But they remain the exception, not the rule. Those who wish to advance must be able to do so", said the President.
He also recalled the proposals the European Commission has already put on the table towards the banking union, namely those on capital requirements and common bank resolution, and elaborated on proposed concepts of fiscal and political union as the second and third building blocks for a genuine Economic and Monetary Union.
"Let me leave you in no doubt – this crisis is the biggest threat to all that we have achieved through European construction over the last 60 years. Faced with this stark reality, standing still is not an option. A big leap forward is now needed. It may not be simple. It will require ambition, vision and determination to enact far-reaching reforms. But I believe this is the best, and indeed the only way forward that can give our citizens the prosperity, our businesses the opportunities, and our young people the futures that they all deserve", concluded the President.
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What the Commission brings to the European Council
Video of debate with Q&As
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