Merkel: EU needs Political Solutions for several Building Blocks.+A Political Will to do so exists !

*Brussels/EU Summit/Angelo Marcopolo/- Repeating several times the Key word "Political Will", the Iron Lady in a Velvet Glove of the most Populated and Economically Performant EU Member Country, German Chancellor Angie Merkel, concluded in a Press Conference the October 2012 EU Summit by stressing that Europe is "right in the process of searching to find Political Answers", to its current needs.

- Because, today, "the Crucial Question of €uroCurrency and EU's Future are linked with the Stabilisation and the Development of the European Economic and Monetary Union", as Merkel stressed from the outset.

- Indeed, "we (EU) must be Careful not to forget  that we have significant Architectural Discrepancies to settle in the €uro Area, if only for a few days there is a rather Calm Situation in the Financial Markets without interests reaching new Heights", she warned.

- In fact, "we (EU) need a Closer Economic Policy Coordination", (as also supported by the relevant Draft Paper presented by EU President Van Rompuy), where one main Idea is to have "Binding Contracts between EU Commission and Member States, on the basis of Country-Specific Recommendations". And, in this regard, we (EU Summit) discussed, f.ex. yesterday if we should Start with those Countres which face Financial Imbalances, or not, Merkel revealed.

- The overall "Logic is that elements of Solidarity must always go hand by hand with an element of Stronger Monitoring", so that their respective Levels can Fit to each other", the German Chancellor confirmed, citting f.ex. the fact that the New €uroArea Treaty (which introduces a "Golden Rule" with a "Debt Break" : See relevant "EuroFora"s NewsReports from Elysée Palace on August 16, 2011, and from Brussels' EU Summits of December 2011 and January 2012, etc), which was adopted "practically at once", together with the creation of the European Stability Mechanism, due to help €uroZone Members which might face Financial Markets' problems.

A "Logic" which was initially evoked, at a Franco-German Summit's Press Conference in Freiburg, as early as since December 2010, (See "EuroFora"s NewsReports from the spot), when former French President Sarkozy and German Chancellor Merkel launched a Strategy for deeper "Integration" inside €uroArea, while the Press was raising questions about German Finance Minister Shauble's reported suggestion that a Stronger European Integration would gradually open some room also for a stronger EU Solidarity.
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In fact, for Merkel this process should advance by adding certain key "Building Blocks" which "fit" together, couple by couple : Something which can take some Time in order to have a Solid "Quality" Basis, but, at any case, should be, all in all, much Shorter than 5 years, contrary to what a critical question supposed, which was clearly rejected by Merkel as too long.
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From the Timing point of view, in fact, October 2012 EU Summit decided an Agenda which practicaly postpones many important Decisions for December 2012 and later, (i.e. in fact after the forthcoming USA Presidential Elections of November) : This concerns at first the main Agenda on Banks' Supervision and eventually recapitalisation , (See the relevant "EuroFora" publication of yesterday : .http://www.eurofora.net/newsflashes/news/hollandeonbankinguniontiming.html ) 

+ French President Hollande also confirmed, earlier today, that several other issues, highlighted by EU Council since january 2012 and decided on June, are expected, in fact, to be finalized ar around December 2012, such as BEI's 10 Billions capital augmentation, unused Structural Funds' reorientation, 4 or 5 Billionsd € for "Project Bonds", etc. As for the effective entry into force of the Single Supervision Mechanism on Banks, it was agreed to be scheduled for more or less near the 2014 EU Parliament's Elections, (i.e. "at the Beginning of 2014", as Merkel noted).
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It is around that same Date, of 2014 EU Elections, that French President Hollande confirmed, earlier this morning, that he estimates as most probable for a kind of "Political Union" in a Europe advancing with "Multiple Speeds", €uroArea being destinated to faster and deeper Integration than the rest of the EU, (to which, however, an Open Door policy would be applied).

- "Nobody can hinder €uroArea Countries to Advance Forward whenever they want", the French President stressed, adding also that a Special "EuroArea" Section inside the existing EU Parliament would be a Good Idea for the forseeable Future.

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- For the moment, "the sustainable Stabilisation of the Economic and Monetary Union was at the Centre of this (October 2012) EU Summit", stressed Merkel from the beginning of her Press Conference, speaking to Journalists in Brussels, including "EuroFora", just after Hollande, .. (i.e. by a Positive "coincidence", precisely as "EuroFora" had suggested; yesterday evening, when we spoke with a Merkel's aid, so that the Journalists can follow both Franco-German Press Conferencies, one after the other, in order to be able to forge an overall view on EU "Motor"'s stance on main current issues)....

- Thus, "placing Quality before Speed", we (EU) agreed "to have at the Beginning of 2013 (i.e. shortly after the December 2012 EU Summit) a Legal Framework for a Single Supervision Mechanism on Banks, on which, ECB could then build up the real tools due to exert that Banking Supervision "in the course of the Year 2013", so that, when, after the right Legal Basis, an effective and viable Supervision Authority would have been built, then, the Direct ReCapitalization of Banks which might need it, could start", Merkel explained.

- At any case, "we (EU) shall see if we are Ready, or not" at the scheduled dates, replied the German Chancellor to another relevant question. - What counts is that "the Political Will" to do so, at the scheduled Dates, exists, she confirmed.

+ As for various other questions which remain yet to be settled in practice, (f.ex., whether it's possible to separate ECB's Monetary competences from its Supervision competences, and how Non-€uro States might be included in that Supervision") to which she "replied Positively", there is not yet a need to speculate here today. Because, at any case, - "We (EU) want a Supervision on Banks, and we will find a way or another to have such a Supervision !", Merkel stressed firmly.

Various such "Details" were left for Finance Ministers and Experts to analyse and propose possible solutions, while, we, as EU Heads of State/Goverment, wanted to express our Political Will in favor of ECB as single Supervisor of Banks, directly and/or indirectly, and this will not be altered, confirmed the German Chancellor, pointing to the fact that what is really at stake at this stage is to "do what is needed in order to Guarantee a Stable Banking System throughout the entire €uroArea".

For that overall purpose, the scheduled EU Plan has, in fact, several "Parts", including the creation of a "Single Supervision System" over Banks in €uroArea, and a related mechanism for Banks' "ReCapitalisation" under certain Conditions, she noted, in reply to questions. Both these "Parts" are on the Agenda of the Work which needs to be done now, Merkel confirmed.

-  In fact, we (EU) have to find the Best possible Mechanisms. If ECB creates them Faster and needs less than 12 Months, then, that is all right with me : It only must work well", the German Chancellor concluded on the precise Timing issue.

=> Concerning all various practical and other particular aspects of the planned Banking Union (or, more precisely, of the Bank Supervision and conditional Recapitalisation systems), "we simply said that this must be of Good Quality, it must Work, and -contrary to what we had until now- it must bring an Added Value", Merkel clarified.
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+ Moreover, advancing further beyond that, "we (October 2012 EU Summit) also discussed about Other elements for a further Development of the Economic/Monetary Union", f.ex. concerning the matter of "Budgetary Discipline", where we agreed that "we need an Integrated Budgetary Framework", as part of the EMU, as welll as what could be named as a kind of "Solidarity Fund" in order to improve Competitiveness", the German Chancellor revealed, (anouncing another "Building Block" with a "Control and Solidarity Logic" : Comp. Supra)...

However, since a much needed "Reinforced Economic Coordination" in €uroZone "should also generate Binding Reform-related Obligations between EU Commission and Member States", then, "we must fairly Legitimize that Democratically", Merkel warned, after pointing, already earlier also at an enhanced EU Parliament's role, (comp. also Supra about Hollande's relevant observations on MEPs, made earlier today, as well as experienced German Finance Minister Schauble's landmark statements at an ENA-CoE Conference, since the beginnng of September in Strasbourg : Comp. relevant "EuroFora"s NewsReport : http://www.eurofora.net/newsflashes/news/schaubledauloneupoliticalunion.html ).
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The German Chancellor was speaking at an overloaded Press Conference, full of sitting and even standing Journalists obviously interested to know all about her stance on the issues, at the Conclusions of the October 2012 EU Summit in Brussels, which was exceptionally prolonged so that it  over-lasted an earlier Press Conference by French President Hollande, so that Journalists could be able to follow more or less Both Franco-German Leaders, facilitating a much needed overall view and Synthesis on the respective and joint views of EU's Franco-German "motor", by an astonishingly Positive "coincidence", just after "EuroFora" had suggested precisely such a solution to a Merkel's aid, yesterday evening...

Also because, in fact, related developments evolve Fast, as, f.ex. EU Parliament is due to discuss the real outcome of the October 2012 EU Summit immediately afterwards, at its Next Week's Plenary Session in Strasbourg, in the presence also of EU Commission and EU Council's Presidents Barroso and Van Rompuy.
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