Prime Minister Katainen: EU moves forward in a positive spirit

On 13–14 December, the meeting of EU Heads of State or Government discussed the guidelines for the development of the Economic and Monetary Union to safeguard economic growth, wellbeing and stability in Europe. Economic policies in the Member States must be geared towards sustainability and disciplinity with the intention of enhancing competitiveness and boosting employment.

"The atmosphere was very constructive and, this time, dicussions focused on the setting up of long-term guidelines rather than on acute decision making. We had very open discussions on the ways to remedy the EMU's defects. We were in no hurry to come up with guidelines that would not have been acceptable to all Member States", Prime Minister Katainen said.

The agreement on bank supervision, reached on 13 January by the Finance Ministers, was an important step forward. As regards the other elements of the banking union, work on the proposals for a Recovery and Resolution Directive and for a Deposit Guarantee Scheme Directive should be accelerated so that they can be adopted by June 2013. It is also necessary to complete the legislative package for stronger economic governance and budgetary discipline, the 'two-pack'.

Jyrki Katainen Prime Minister Jyrki Katainen. Photo: Council of the European Union

With regard to the banking union, the next logical step is to set up a common framework for crisis management and resolution of banks. The framework must not impose permanent costs on the public sector.

From now on, it will be necessary to examine the related contractual arrangements and financing to support the implementation of the required structural policy reforms – that is the solidarity mechanism. A redemption fund and an instrument to even out cyclical swings (a budget for the euro area), as proposed originally by the President of the European Council, did not gain support. "This is also very welcome," said Prime Minister Katainen.

The EU leaders outlined the Common Security and Defence Policy (CSDP) and stated that the European Union is called upon to assume increased responsibilities in the maintenance of international peace and security in order to guarantee the security of its citizens and the promotion of its interests,

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