Herman Van Rompuy summarises main outcomes of EU summit

Herman Van Rompuy, president of the European Council, underlines the key agreements made at the first session of the European Council, including a new approach to private sector involvement and a fiscal compact for the eurozone.

“Let me brief you on the main outcomes of our first working session of this European Council.

“For the short term, we agreed on immediate action to overcome the current difficulties. For the longer term, we agreed on a new fiscal compact for the eurozone.

“As regards the short term, we are increasing our financial resources to address the crisis we face.

“Euro area and other Member States will aim to make available additional resources of up to €200bn to the International Monetary Fund (IMF).

“The European Financial Stability Facility (EFSF) leverage will be rapidly deployed.

“We also agreed on the acceleration of the entry into force of the European Stability Mechanism (ESM) rescue fund. It should enter into force in July 2012.

“As regards the Private Sector Involvement (PSI), we have made a major change to our doctrine: from now on we will strictly adhere to the IMF principles and practices. Or to putit more bluntly: our first approach to PSI, which had a very negative effect on the debt markets, is now officially over.

“So far for the immediate action in the short term. But it is also essential to give a medium and longer-term perspective. We therefore agreed on a new fiscal compact.

“It means: we all commit to a new European strong fiscal rule.

“It means: Member States will transpose it into their constitution or equivalent.

“It means: reinforcing our rules on excessive deficit procedure by making them more automatic. It also means that Member States will have to submit their draft budgetary plans to the Commission.

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