Brussels, 18/03/2016 (Agence Europe) - In June, Europe's leaders will take a new look at progress in completing economic and monetary union (EMU).
In a conclusions document adopted on Thursday 17 March, the Summit stated the EU's economic polices for 2016, namely boosting investment, pursuing structural reforms, and leading responsible budget policies (see EUROPE 11513). It noted the importance of properly functioning labour markets and social protection systems.
Emerging from the first European Summit sitting on Friday 18 March, the Belgian prime minister Charles Michel said there would be an important momentum in June with the report of the five presidents on deepening EMU and the question of Banking Union, which will return to the negotiating table.
In order to strengthen EMU, the EU28 recommend a policy of making a series of small steps, working first on areas which do not require a change to the EU treaties. This would include concluding Banking Union in the eurozone by implementing a deposit (savings) guarantee pillar. At the Council of the EU, the member states are expected to finalise by June a roadmap on work to share - notably via a European deposit guarantee system - and reduce financial risks (see EUROPE 11507).
“I made clear that even though monetary policy has been, really, the only policy driving the recovery in the last few years, it cannot address some basic structural weaknesses of the eurozone economy. For that you need structural reforms mostly driven to raise the level of demand, public investments and lower taxes… even more importantly, one needs clarity on the future of our European Monetary Union,” said ECB president Mario Draghi, who was attending the European Summit. (Original version in French by Mathieu Bion and Sophie Petitjean)