[D66] Joint statement by President of the European Council Van Rompuy and President of the European Commission Barroso on the first day of the G20 Summit in Cannes Euro area crisis management

[Henk Elegeert]

*-Europese Raad:*
-Joint statement by President of the European Council Van Rompuy and
President of the European Commission Barroso on the first day of the G20
Summit in Cannes:
http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ec/125809.pdf
* EN (original version)*
"
 Cannes, 3 November 2011
EUCO 122/11
PRESSE 406
PR PCE 87

Joint statement by
President of the European Council Van Rompuy
and President of the European Commission Barroso
on the first day of the G20 Summit in Cannes
Euro area crisis management

Europe is fully aware of its responsibility in these difficult times. We,
as the world's largest
market, have to play a major role in the global recovery.
Last week, we took major steps to overcome the crisis and ensure financial
stability and we
are determined to implement all the elements of our comprehensive approach
to ensure the
stability of the Euro area.

Our strategy consists of five key elements:
*
*
*First*, a sufficient firewall against contagion. We have agreed to
multiply up to fivefold the
firepower of the European Financial Stability Facility rescue fund. The
leverage could be
around 1 trillion Euro.
*
*
*Second*, a sustainable solution for Greece, comprising a substantial
reduction of its debt with
a voluntary contribution of private creditors.
*
*
*Third*, regarding the European banking sector, we decided on a
co-ordinated scheme to
recapitalise banks across Europe.
*
*
*Fourth*, we have ensured further fiscal consolidation by those EU states
that need more
sustainable public finances and more structural reforms.
*
*
*Fifth*, we have reformed and strengthened economic governance among the
countries that
form the Euro area: with far reaching new measures for budgetary
surveillance and
economic policy coordination, and a political commitment to go beyond to
strengthen the
economic union, thereby achieving further convergence of policies to
promote growth and
employment. We will strengthen the economic union to make it commensurate
with the
monetary union.

We are committed to implement all these measures very rapidly.

The Euro area stands ready to continue to support Greece, but Greece needs
to stick to the
agreed package of 26-27 October and in particular to continue with the
implementation of
the EU/IMF programme. This needs to be crystal clear. We want Greece to
remain in the
Euro.

Given the dramatic domestic political and social situation, national and
political unity in
Greece is essential so that the hope of a better future can be given to the
Greek people. We
trust their sense of responsibility.

The full implementation of the 26-27 October package and the support of the
G20 will
enable us to overcome the current turmoil.

*Global economic situation + G20 Action plan*

The G20 faces again an important moment. Since the last G20 meeting in
Seoul, the global
economic recovery has weakened, while imbalances remain. The financial
market turmoil
has intensified and global growth has slowed while unemployment is rising.
Only with
ambitious action by all, we will be able to generate new growth and get the
200 million
unemployed worldwide back to work.

This outlook is true not only for Europe, but also for the United States
and some emerging
market economies. We all experience difficulties, we all have to contribute
to a solution.
Interdependence is today's reality. As in 2008, when the first G20 summit
took place, we
collectively face major challenges, and international cooperation is the
only way out to
address them.

Measures to stimulate growth are an essential element of our strategy. In
the end, only
sustained economic growth can bring back confidence, create jobs and absorb
debts.
The EU's main contribution here is the above- mentioned package to ensure
stability of the
euro area. We are doing our homework. However, having the Euro zone house
in order is a
necessary, but not a sufficient condition for global growth.

One should thereby not forget that the EU is not contributing to global
imbalances: the EU
has no large current account deficits, continues to have low inflation, has
generally lower
debt levels than some of our major trading partners and the Eurozone has an
exchange rate
which is driven by market forces.

However, as the crisis is global, nobody can on its own bear the burden of
a solution, neither
the EU nor any other player. Today the European Union will call on each and
every member
of the G20 to do its part.

We have stressed three points in the debate this afternoon:
*First*, advanced economies should fulfil their fiscal commitments taken
last year at the G20
summits in Toronto and Seoul. They are still valid.
*Second*, regarding the US: we are encouraged by its commitment on fiscal
consolidation and
we support efforts by the Obama administration to implement its jobs plan.
*Third*, regarding emerging market economies and in particular China: we
note their
commitments on measures to rebalance their domestic economy in the short
term. This
should be accompanied by greater exchange rate flexibility.

Beyond the current economic challenges, we will discuss important issues
for sustainable
and balanced growth in worldwide. The main elements are:

*1. reform on the International Monetary System*
We will discuss the IMF instruments, including the creation of a new
facility, and
appropriate IMF resources. At the current juncture, it is essential that
the IMF is sufficiently
equipped to address the current vulnerabilities and crisis situations
wherever they occur.

*2. financial regulation remains at the core of the G20 work.*
A lot has to be done, but further work is needed, and we need to ensure
that was has been
decided is implemented effectively in all countries. Again, Europe is doing
its homework by
implementing the Basle III rules swiftly and frontloading the efforts.

*3. we will continue to develop the idea of a global financial transaction
tax*

*4. collective action on common goods*
The G20 agenda is more and more dealing with issues relevant for all our
economies: social
consequences of globalisation, transparency of energy markets, volatility
of agricultural
prices, development of the poorest countries, fight against corruption, for
example to oblige
companies active and extractive industries to disclose their payments . As
far as climate
change is concerned, Europe is delivering on the fast- track financing and
has put in place
binding targets in its domestic legislation.

*5. global governance*
Tonight we will look at the G20 itself, on the basis of a report produced
by Prime Minister
Cameron: how to structure its work as the premier forum for international
economic
cooperation, how to enhance its legitimacy and its cooperation with other
international
organisations.
*
*
*6. trade*
Boosting Trade is crucial to support global growth. We will not reach a
comprehensive
global trade deal in the short term. This is depriving the global economy
of a significant
source of growth and risk encouraging protectionist measures. We therefore
call on our
partners to engage in a real discussion on the priorities of the WTO
negotiations in 2012.
We have to continue our negotiations, but give it a fresh approach. This
must include an
active negotiating agenda, in particular for least developed countries and
broaden the scope
of issues being to address new challenges.

To conclude, all the issues we will discuss are about the same fundamental
question: How
can we ensure a stable future for next generations?
"
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