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19 October 2010

Council President Van Rompuy: "The economic governance package should be in place as quickly as possible"


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He stressed that the Task Force has worked like a pressure cooker and that the Commission, the Central Bank and the Ministers of Finance have contributed actively to prepare the final report on economic governance.


The recommendations and concrete proposals contained in the report of the Task Force go in five directions:
·         First direction: broader economic surveillance.
·        Second direction: greater fiscal discipline, a stronger Stability and Growth Pact.
·        Third direction: the Task Force recommends a deeper and broader coordination, notably through the "European Semester". 
·         Fourth direction: a more robust framework for crisis management. The Task Force considers there is a need for a credible crisis resolution framework for the Euro Area in the medium term. It should be capable of addressing financial distress and preventing contagion from one country to another. It must avoid the moral hazard implicit in any ex-ante rescue scheme. The precise features and operational means of such a crisis mechanism will require further work.
·         Fifth and final direction: stronger institutions. At the national level, the Task Force recommends the use or setting up of public institutions or bodies to provide independent analysis and forecasts on domestic fiscal policy matters.


© European Council


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