Brussels, 11/12/2009 (Agence Europe) - Welcoming the capital role played by budgetary and financial support measures in the context of the current crisis, EU leaders have confirmed there will be gradual and coordinated withdrawal once recovery is well underway. In conclusions adopted on Friday 11 December, the European Council explains that, although the economic situation has improved, it remains fragile. Return to more sustained growth will not occur until 2011, although there is still uncertainty. “In order to anchor expectations and reinforce confidence, the European Council reconfirms the importance of developing and communicating credible and coordinated strategies for exiting from the broad-based stimulus policies”, the conclusions state. Referring to its own conclusions of 20 October this year, the European Council recalls that the effort of annual budgetary consolidation should be by way of at least 0.5% of GDP and be combined with structural reform. Such improvements will begin in 2011 at the latest “provided that the Commission forecasts continue to indicate that the recovery is strengthening and becoming self-sustaining”, the conclusions reiterate. Following more recent conclusions by the Ecofin Council, the EU27 recommend that principles defined at the time by finance ministers should be followed to guide the way work is to continue with a view to dismantling support measures for banks (state guarantees, recapitalisation and active rescue measures). “It is crucial to develop a coordinated approach, which takes account of financial stability and individual member states' circumstances and provides adequate incentives for financial institutions to cease to depend on public financial support”, the heads of state explain, calling on the Council to report on exit strategies by June 2010, not only in the budgetary field but also in the financial sector. (A.B./transl.jl)