Leaders of the 27 European Union (EU) member states have agreed on a long-awaited comprehensive package of economic measures at a crucial summit in Brussels to shore up the euro and tackle the bloc’s sovereign debt crisis.

“We adopted the Euro Plus Pact … We have a complete agreement on the ESM (European Stability Mechanism) … even in details,” President of the European Council Herman Van Rompuy said at a press conference held in the early hours of Friday morning.

The package mainly includes an expansion of the EU’s bailout fund, establishment of a permanent rescue mechanism (ESM) in the euro zone, a new round of stress test in the banking sector and reforms to improve economic competitiveness and convergence of euro zone economies (Euro Plus Pact).

“In terms of economic governance, today was a real breakthrough … The basic framework was adopted today,” European Commission President Jose Manuel Barroso said at the same press conference.

Earlier on the day, some 20,000 protesters also took to the streets in Brussels as European trade unions were concerned about the Euro Plus Pact, under which euro zone governments will push ahead with tough economic and social reforms.

Six non-euro zone member states have also voluntarily joined the pact, including Poland, Bulgaria, Denmark, Romania, Malta and Cyprus.

The pact “will provide for a new quality of economic coordination,” the EU president said in a Twitter message shortly after the press conference.

The effective lending capacity of the 440 billion euro bailout fund will be in place in June, according to another Twitter message of the president.

Van Rompuy also told reporters hours ahead of the summit that the European Council was “a turning point in the euro crisis management.”

“We have achieved unimaginable change in policy instruments, a quantum leap,” he said.

&$Source: Xinhua&$

Read more from the original source:
EU adopts full package to shore up euro

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Year in Review: Rollback of pandemic restrictions fuelled growth

An easing of Covid-19-related restrictions and shifting supply chains have bolstered growth in Asia, even as inflation and climate change generate significant headwinds.

Reshoring China Production to Thailand: Key Sectors that Benefit

Thailand is benefitting from Sino-US trade tensions with several Chinese-based firms relocating part of their supply chain to Thailand, especially for electronics, chemicals, and automotive

Growth in developing East Asia to accelerate to 5.1% says World Bank

Growth in developing East Asia and the Pacific is forecast to accelerate in 2023 as China’s economy reopens, while the pace of growth in most of the economies in the rest of the region is anticipated to ease after a strong rebound last year, a World Bank report said on Thursday.