BRUSSELS (MNI) – Following is the full text of the statement issued
by the EU Summit early Friday morning:
“We affirm that it is imperative to break the vicious circle
between banks and sovereigns. The Commission will present Proposals on
the basis of Article 127(6) for a single supervisory mechanism shortly.
We ask the Council to consider these Proposals as a matter of urgency by
the end of 2012. When an effective single supervisory mechanism is
established, involving the ECB, for banks in the euro area the ESM
could, following a regular decision, have the possibility to
recapitalize banks directly. This would rely on appropriate
conditionality, including compliance with state aid rules, which should
be institution-specific, sector-specific or economy-wide and would be
formalised in a Memorandum of Understanding. The Eurogroup will examine
the situation of the Irish financial sector with the view of further
improving the sustainability of the well-performing adjustment
programme. Similar cases will be treated equally.
We urge the rapid conclusion of the Memorandum of Understanding
attached to the financial support to Spain for recapitalisation of its
banking sector. We reaffirm that the financial assistance will be
provided by the EFSF until the ESM becomes available, and that it will
then be transferred to the ESM, without gaining seniority status.
We affirm our strong commitment to do what is necessary to ensure
the financial stability of the euro area, in particular by using the
existing EFSF/ESM instruments in a flexible and efficient manner in
order to stabilise markets for Member States respecting their Country
Specific Recommendations and their other commitments including their
respective timelines, under the European Semester, the Stability and
Growth Pact and the Macroeconomic Imbalances Procedure. These conditions
should be reflected in a Memorandum of Understanding. We welcome that
the ECB has agreed to serve as an agent to EFSF/ESM in conducting market
operations in an effective and efficient manner.
We task the Eurogroup to implement these decisions by 9 July 2012.”
[TOPICS: M$$CR$,M$X$$$,MFXBO$,M$$EC$,M$E$$$,MT$$$$]