At the meeting of the European Council they also reaffirmed their determination to ensure fiscal sustainability, confirmed their commitment to ensuring financial stability and agreed on the need to reinforce coordination of economic policies.
As regards Europe 2020, with its five quantified headline targets, the member states will over the coming months discuss how specific policies can be mobilised to unlock the growth potential of the European Union, starting with innovation and energy policies. Investment in research and development could be raised to 3% of GDP.
The leaders believe that the necessary reforms of the regulation of financial services must be completed urgently. "Our priority is to have a solid and healthy banking system," said Herman Van Rompuy, President of the European Council. In order to ensure the resilience and transparency of banks, the results of stress tests by banking supervisors will be published in the second half of July at the latest.
The European Council also agreed that member states should set up levies on financial institutions to ensure fair burden-sharing in the event of a crisis. At the forthcoming G20 summit in Toronto, the EU will propose introducing such schemes at a worldwide level.
EU leaders stated that Iceland meets the political criteria for joining the EU and decided that membership talks should be opened. As regards the enlargement of the eurozone, Estonia fulfils all convergence requirements and should be ready to adopt the common currency on 1 January 2011.
Europe 2020 finalised
European leaders meeting in Brussels on 17 June adopted Europe 2020, a new 10-year strategy for jobs and growth which will promote the delivery of structural reforms.
The leaders believe that the necessary reforms of the regulation of financial services must be completed urgently. "Our priority is to have a solid and healthy banking system," said Herman Van Rompuy, President of the European Council.
By: N. Peter Kramer
