European Commission President on economic governance

21 September 2011

Statement by European Commission President Barroso following the agreement on the economic governance package

One year ago, the Commission presented a package of six legislative proposals to strengthen the economic governance of the European Union and of the euro area in particular. Today, an agreement has been finalised which, pending formal endorsement by the European Parliament and the Council in the coming weeks, will allow this package to enter into force. This is excellent news for Europe.

The economic crisis presented us with two great challenges: how to mitigate its effects on individuals and businesses; and how to ensure that we never find ourselves in such a dramatic situation again. We have been working hard on both fronts, with tangible, significant results. And today, we have taken a major step forward on the second.

This agreement gives the EU and its Member States a powerful tool—one missing until now—to avoid falling into the trap of unsustainable debt. It will also, for the first time, allow us to anticipate the development of macroeconomic imbalances that could pose a threat to the stability of the euro area. And while the emphasis will be on prevention, we will also have the capacity to take corrective action in a swifter and more decisive way than ever before, with greater automaticity in the application of sanctions.

This is a robust answer to what was a serious shortcoming in the design of the euro—and a qualitative leap forward for our economic and monetary union.

ENDS

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