President Sarkozy and the German Chancellor reaffirm their commitment to fully implementing the decisions taken at the Meeting of Heads of State or Government of the Euro Area and EU Institutions on 21 July 2011.
In particular, they emphasize the importance they attach to swiftly obtaining the relevant parliamentary authorizations in their two countries before the end of September.
They welcome the decisions taken in Italy and Spain to accelerate the stabilization of public finances and improve competitiveness. In particular, the Italian authorities’ objective to balance the budget a year ahead of schedule is of fundamental importance. They emphasize that the swift, complete implementation of the announced measures is key to restoring market confidence.
As decided on 21 July 2011, the effectiveness of the European Financial Stability Facility (EFSF) will be improved and its flexibility enhanced in connection with appropriate conditionalities, particularly through the following instruments: precautionary programmes, financing the recapitalization of financial institutions and intervening in the secondary markets on the basis of an ECB analysis recognizing the existence of exceptional financial market circumstances and risks to financial stability, and on the basis of a decision by mutual agreement of the [EFSF/ESM] member states to avoid contagion.
In line with the decisions of 21 July, France and Germany are confident that the ECB analysis will provide the appropriate grounds for interventions in secondary markets as it will help determine the cases in which there is a risk to the financial stability of the Euro Area as a whole./.