“Exactly one year ago, on 25 March 2010, the European Council decided to improve the Union’s economic governance by launching the Task Force. One year later, we have witnessed a sea change. In twelve months, the functioning of the Economic and Monetary Union and of the eurozone has fundamentally improved. We have new rules, new instruments and more ambitious policies. It was not always easy, not always without drama, but the result is here,” commented Herman Van Rompuy, President of the European Council.

After national approvals, the European Stability Mechanism (ESM) will replace the temporary European Financial Stability Facility (EFSF). The ESM will have 500 billion euros available. The temporary facility, to be in place in June, will have an effective lending capacity of 440 billion euros. The leaders underline the importance of credible stress tests for banks.

The Euro Plus Pact is about what more the eurozone countries want to do on top of the existing commitments and arrangements and it is open to the other member states. “Today I am glad that Poland, Denmark, Bulgaria, Romania, Lithuania and Latvia announced they will join the Euro Plus Pact,” said President Van Rompuy.

He pointed out that some people feared the dismantling of the welfare state and social protection and he gave assurances that this was not the case. “What we are doing is making sure that our economies are competitive enough to create jobs and to sustain the standard of living for all citizens,” added the President of the European Council.