Extraordinary ECOFIN

Thursday 27th October 2011 Written Statements

[The Chancellor of the Exchequer (Mr George Osborne)]

An extraordinary meeting of the Economic and Financial Affairs Council was held in Brussels on 22 October 2011.

The Council met to prepare the European Council meeting of 23 October as regards measures to stabilise the situation on financial markets, restore confidence, and foster economic growth and employment. It held an exchange of views on bank recapitalisation and funding as part of a comprehensive strategy to be defined by the European Council and by Heads of State and Government of the euro area.

I emphasised the importance of a decisive co-ordinated recapitalisation as part of a comprehensive solution to the euro crisis, and that this should be accompanied by reform of Europe’s banking sector. I also underlined that there should be no watering down of state aid rules.

The president of the Council presented the outcome of the meeting to the European Council, and it was reflected in the European Council conclusions as follows:

“The European Council welcomes progress made by the Council (ECOFIN) on measures for the banking sector and invites the Council to finalise this work at its meeting of 26 October. These measures will be an essential component of a broader package whose other elements will be agreed by the Euro Summit of 26 October.”