The Council adopted a recommendation on the nomination of Mario Draghi as President of the European Central Bank, to succeed Jean-Claude Trichet. The recommendation will be submitted to the European Council, which will decide at its meeting on 23 and 24 June.

The Council adopted a decision on financial assistance to Portugal.

Loans amounting to €26 billion will be granted under the European Financial Stability Mechanism (EFSM), as part of a €78 billion package of financial assistance and on the basis of a programme negotiated with the Portuguese authorities by the Commission and the IMF, in liaison with the ECB. The three-year programme will involve reforms to Portugal’s labour and product markets, its financial sector and its public finances, with the reduction of its government deficit below 3 % of gross domestic product by 2013.

The Council also reviewed implementation of the economic adjustment programme for Ireland, approving technical amendments to the conditions underpinning financial assistance under the EFSM.

Taking stock of work on legislative proposals dealing with economic governance, the Council examined how negotiations with the European Parliament could proceed on certain issues so as to reach an overall agreement next month, as planned.

Part of the EU’s response to the challenges posed by the sovereign debt crisis, the proposals are aimed at enhancing budgetary discipline in the member states and addressing macroeconomic imbalances within the EU, and more specifically in the euro area.

The Council reached agreement on a draft regulation on short selling and credit default swaps, introducing transparency requirements and harmonising the powers that national regulators may use in exceptional situations.