Decisions postponed to 2013

Further steps in the direction of banking union while economic and monetary union is once more delayed: The European Council of December 13-14 served to give new impetus to dialogue between EU Member States after the hot debates and the ensuing standstill on the multiannual budget at the November summit. Hanging questions are hoped to be addressed with political and diplomatic action by next year’s executive leaders, to as to reach understandings that are crucial to EU27 performance and to the creation of a true economic governance as demanded by global markets and competitors, from China to the United States, from Russia to Brazil. Banking supervision. The Summit of Heads of State and Government gave the green light to the single banking supervision mechanism following the agreement reached on December 12 by Economic and Finance Ministers. The Central Bank in Frankfurt will have a role of direction and supervision on about 150 large banks, determined in terms of turnover and assets (over € 30 billion). ECB activities of monetary policy will be distinguished from surveillance (via the "Board of Supervisors"); 24 States participate in the banking union owing to the refusal of the United Kingdom, Sweden and the Czech Republic. The decision will be operational once the latest, non-secondary details are defined, as of 1 March 2014. Banking supervision will also enable the recapitalization of banks in difficulty through the European Stability Mechanism (ESM), thus breaking – as often pointed out- the vicious circle of sovereign debt and bank bailouts. European Council President Herman Van Rompuy, said that the heads of national governments "responded with unanimous consensus to the banking supervisory system", whose "objectives are to protect investors and economic systems".EMU, a new step in June. With regard to economic and monetary union (EMU), the lack of a converging position between the Heads of State and Government of the Union was acknowledged. Probably the same situation applies to the 17 eurozone countries. Despite this, pleasantries were expressed. "It was a tough year for European citizens, but now we can see positive signs" on a macroscopic level, "while we are making progress towards a more effective governance". José Manuel Barroso, President of the EU Commission, had to adapt to the decisions of the European Council, which among other things asked him to draw up a "roadmap" for EMU, to be presented at the summit in June for discussion in the following months, thus delaying any decision until after the German elections of September. The "Conclusions" of the Council (i.e., the final document of the summit) state that the meeting in June 2013 "will further examine a number of other important aspects concerning the coordination of national reforms" and "the social dimension of EMU", as requested by the European Parliament, as well as "the feasibility and modalities of mutually agreed contracts for competitiveness and growth, solidarity mechanisms along with measures to promote the single market and to protect its integrity". Before leaving for their respective capitals, many leaders commented on the meeting in more or less satisfied tones, while recognizing that – as has been suggested by some of them – politics requires patience and mediation skills. The short timeframe is not, in fact, a feature of EU policy. Additionally, countries which do not form part of the eurozone conveyed their opposition, and, more generally, Member States continue to look with suspicion any "transfer of sovereignty" in the economic, budgetary and taxation matters to Community institutions. Foreign policy and security. The summit addressed other issues of domestic and foreign policy. The "Conclusions" state: "The European Council reiterates its view that Syria requires a political transition to a future without President Assad and his illegitimate regime": the EU thus conveyed its indirect support to the forces of oppositions to regime. The final document addresses the issue of security and defense. "In a changing world like today’s, the EU is called to assume increasing responsibility for the maintenance of peace and security in order to ensure the safety of its citizens and the promotion of their interests". The Council thus gave a mandate to the High Representative for Foreign Policy, Catherine Ashton, and Commission President Barroso, to make "proposals and actions to strengthen foreign policy and Security", and "to report on these initiatives by September 2013 in view of the EU Council in December 2013". Furthermore, the Council "awaits the presentation by the Commission of a new common strategy for the Adriatic and Ionian region by 2014".