European Council
The European Council has agreed on the banking union. Angela Merkel welcomed this agreement on Europe-wide rescue scheme for overly indebted banks within the EU, which she deemed a huge success. In future the European Union is also to cooperate more closely on security and defence matters.
The meeting focussed on foreign and security policy, as well as the economic and monetary union
Photo: Bundesregierung/Denzel
Progress was also made on binding agreements for reform to complete economic and monetary union.
After the first working session of the European Council the Chancellor praised the agreement hammered out by the EU finance ministers on a banking union. This must still be approved by the European Parliament. "Over the next ten years we will be setting up a fund," explained Angela Merkel. She made it clear that until this fund is up and running, national sources or the European Stability Mechanism (ESM) will have to provide assistance if required.
The EU has learned its lessons from the debt crisis. It is now acting to protect savers and ensure that tax-payers are not presented with a hefty bill to rescue failed banks.
Conclusions for more growth and employment
The European Council has also looked at stepping up economic-policy coordination with the European Union. Chancellor Angela Merkel said that there had been lively debate.
"If we want to have an economic and monetary union, we need to coordinate our economic policy more closely,“ said the Chancellor. The European Council wants to use the time until October 2014 to discuss future agreements between the Commission and member states.
It is important that member states accept greater responsibility for acting on the recommendations of the Commission. "But we are coming closer to agreeing that this economic coherence is absolutely essential if we are to see an overall stable and sustainably stable monetary union," Angela Merkel continued.
Brussels, 19.12.13: The two-day meeting focussed on common security and defence policy and the development of the economic and monetary union
The Council also discussed the conclusions of the EU finance ministers regarding the banking union, which have been criticised by Martin Schulz, President of the European Parliament.
The Chancellor, Italian Prime Minister Enrico Letta and Danish Prime Minister Helle Thorning-Schmidt greet one another.
Many participants congratulate the Chancellor on her re-election.
A traditional item on the agenda is the obligatory family photo.
At the end of the day the Chancellor informs waiting journalists about the conclusions reached.
A decision on binding agreements on reform between individual member states and the European Commission will not be taken before October 2014, reported the Chancellor.
Brussels, 20.12.13: On Friday the heads of government meet for their second working session. On the agenda - the common foreign and security policy.
Focus on security and defence
For the first time since the Treaty of Lisbon came into force the Council looked at the common security and defence policy. The focus was on greater cooperation in the field of defence.
"This is an area in which Europe could cooperate a lot more closely," said the Chancellor. "We can focus our defence procurement activities but what we need most of all is coordinated global policies". In talks with NATO General Secretary Anders Fogh Rasmussen, the EU member states have clearly stated that the defence policy of NATO and of the European Union will be closely coordinated.
Germany urged that the European states need not always intervene, but that other regional institutions should be responsible for security in individual regions, such as Africa. Training missions have an important part to play in this.
The heads of state and government agreed on the joint development of a European reconnaissance drone by 2025. So far seven member states, including Germany, are involved.