The full announcement:

“The Eurogroup recalls that a full staff-level agreement has been reached between Greece and the Troika on updated programme conditionality and that, according to the Troika, Greece has implemented all agreed prior actions.

The Eurogroup in particular welcomes the updated assessment of the Troika that Greece has implemented in a satisfactory manner a wide ranging set of reforms, as well as the budget for 2013 and an ambitious medium term fiscal strategy 2013-16.

The Eurogroup noted with satisfaction that the updated programme conditionality includes the adoption by Greece of new instruments to enhance the implementation of the programme, notably by means of correction mechanisms to safeguard the achievement of both fiscal and privatisation targets, and by stronger budgeting and monitoring rules. Greece has also significantly strengthened the segregated account for debt servicing. Greece will transfer all privatizations revenues, the targeted primary surpluses as well as 30% of the excess primary surplus to this account, to meet debt service payment on a quarterly forward-looking basis. Greece will also increase transparency and provide full ex ante and ex post information to the EFSF/ESM on transactions on the segregated account.

The Eurogroup again commended the authorities for their demonstrated strong commitment to the adjustment programme and reiterated its appreciation for the efforts made by the Greek citizens.

The Eurogroup noted that the outlook for the sustainability of Greek government debt has worsened compared to March 2012 when the second programme was concluded, mainly on account of a deteriorated macro-economic situation and delays in programme implementation

The Eurogroup considered that the necessary revision in the fiscal targets and the implied postponement of a primary surplus target of 4.5% of GDP from 2014 to 2016 calls for a broader concept of debt sustainability encompassing lower debt levels in the medium term, smoothing of the current financing hump after 2020 and easing of its financing.

The Eurogroup was informed that Greece is considering certain debt reduction measures in the near future, which may involve public debt tender purchases of the various categories of sovereign obligations. If this is the route chosen, any tender or exchange prices are expected to be no higher than those at the close on Friday, 23 November 2012.

The Eurogroup considers that, in recapitalising Greek banks, liability management exercises should be conducted in respect of remaining subordinated debt holders so as to ensure a fair burden sharing.

Against this background and after having been reassured of the authorities’ resolve to carry the fiscal and structural reform momentum forward and with a positive outcome of the possible debt buy-back operation, the euro area Member States would be prepared to consider the following initiatives:

- A lowering by 100 bps of the interest rate charged to Greece on the loans provided in the context of the Greek Loan Facility. Member States under a full financial assistance programme are not required to participate in the lowering of the GLF interest rates for the period in which they receive themselves financial assistance.

- A lowering by 10 bps of the guarantee fee costs paid by Greece on the EFSF loans.

- An extension of the maturities of the bilateral and EFSF loans by 15 years and a deferral of interest payments of Greece on EFSF loans by 10 years. These measures will not affect the creditworthiness of EFSF, which is fully backed by the guarantees from Member States.

- A commitment by Member States to pass on to Greece’s segregated account, an amount equivalent to the income on the SMP portfolio accruing to their national central bank as from budget year 2013. Member States under a full financial assistance programme are not required to participate in this scheme for the period in which they receive themselves financial assistance.

The Eurogroup stresses, however, that the above-mentioned benefits of initiatives by euro area Member States would accrue to Greece in a phased manner and conditional upon a strong implementation by the country of the agreed reform measures in the programme period as well as in the post-programme surveillance period.

The Eurogroup is confident that, jointly, the above-mentioned initiatives by Greece and the other euro area Member States would bring Greece’s public debt back on a sustainable path throughout this and the next decade and will facilitate a gradual return to market financing. Euro area Member States will consider further measures and assistance, including inter alia lower co-financing in structural funds and/or further interest rate reduction of the Greek Loan Facility, if necessary, for achieving a further credible and sustainable reduction of Greek debt-to-GDP ratio, when Greece reaches an annual primary surplus, as envisaged in the current MoU, conditional on full implementation of all conditions contained in the programme, in order to ensure that by the end of the IMF programme in 2016, Greece can reach a debt-to-GDP ratio in that year of 175% and in 2020 of 124% of GDP, and in 2022 a debt-to-GDP ratio substantially lower than 110%.

As was stated by the Eurogroup on 21 February 2012, we are committed to providing adequate support to Greece during the life of the programme and beyond until it has regained market access, provided that Greece fully complies with the requirements and objectives of the adjustment programme.

The Eurogroup concludes that the necessary elements are now in place for Member States to launch the relevant national procedures required for the approval of the next EFSF disbursement, which amounts to EUR 43.7 bn. EUR 10.6 bn for budgetary financing and EUR 23.8 bn in EFSF bonds earmarked for bank recapitalisation will be paid out in December. The disbursement of the remaining amount will be made in three sub-tranches during the first quarter of 2013, linked to the implementation of the MoU milestones (including the implementation of the agreed tax reform by January) to be agreed by the Troika.

The Eurogroup expects to be in a position to formally decide on the disbursement by 13 December, subject to the completion of these national procedures and following a review of the outcome of a possible debt buy-back operation by Greece.”

As declared, the EU remains deeply concerned about the spill-over effects of the Syrian crisis in neighbouring countries in terms of security and stability. It calls on the Syrian regime to respect the territorial integrity and sovereignty of neighbouring countries. The regime’s brutality has had tragic effects in Syria and serious repercussions in neighbouring countries.

The announcement wrote: “The European Union recalls its full support to the Joint UN-League of Arab States Special Envoy Kofi Annan’s mission and his six point Plan that must be implemented. It welcomes the outcome of the Action Group meeting in Geneva on 30 June 2012 and in particular the call for the establishment of a transitional governing body with full executive powers made up of opposition and government representatives and formed by mutual consent. The EU encourages Kofi Annan to continue working on the implementation of this transition plan, including with the Action Group, and urges all parties to support these efforts.

The EU also welcomes the outcome of the third meeting of the Group of Friends of Syrian people on 6 July in Paris that has gathered more than 100 countries and organisations and showed the growing consensus of the international community in favour of a democratic transition in Syria and looks forward to the convening of the next meeting of the Group.

The EU underlines that those whose presence would undermine the transition should be excluded and that President Assad, in this regard, has no place in the future of Syria.

The EU deeply regrets that the UNSC has not been able to agree to a UNSC resolution which would have endorsed the communiqué of the Action Group and foreseen measures to enforce compliance with the Annan Plan under Article 41 of the UN Chapter. The EU regrets that the UNSC has thus failed to uphold its responsibilities and to back the Joint Special Envoy’s efforts. The EU calls for united action by all members of the UNSC, including Russia and China, to add more robust and effective pressure and ensure that there will be serious consequences for continued non compliance with its previous decisions.

The EU welcomes the decision to renew the mandate of UNSMIS for a final period of 30 days, taking into account the UN Secretary-General’s recommendations to reconfigure the Mission and taking into consideration the operational implications of the increasingly dangerous security situation in Syria. The EU recalls that the Syrian authorities are responsible for ensuring the security and safety of the mission. The EU is ready to provide the needed support to guarantee the success of the supervision mission.

The EU remains deeply concerned about the human rights situation and breaches of international humanitarian law in Syria. The systematic and widespread human rights violations and abuses committed by the regime demonstrates its outright contempt for human rights. The EU is also concerned about recent reports of alleged use of cluster munitions against civilians. The EU reaffirms its support to the Independent International Commission of Inquiry on Syria and its investigations into alleged violations of international human rights law with a view to hold to account those responsible for such violations, including for those that may amount to crimes against humanity. The EU recalls that all those responsible for widespread, systematic and gross human rights violations must be held accountable. The EU welcomes the adoption of the UN Human Rights Council resolution adopted on 6 July on the human rights situation in Syria.”

EU heads of state or government will conclude the first phase of the 2012 European Semester, the six-month cycle of economic policy coordination. They will endorse the country-specific recommendations prepared by the Commission that provide guidance for member states implementing national decisions on budgets, structural reforms and employment policies.

The European Council will take stock of the implementation of the “EU growth agenda”, with a particular emphasis on youth employment. Furthermore, it will review progress and discuss how the Union can deepen its trade and investment relationships with key partners.

EU heads of state or government will also have their first substantial discussion on the Multiannual Financial Framework (2014-2020).

Finally, the European Council is expected to examine the question of opening accession negotiations with Montenegro, following the 26 June General Affairs Council.

In his invitation letter to European leaders, European Council President Herman Van Rompuy wrote: “The challenge for this European Council is, more than ever before, to signal, in a clear and concrete manner, that we are doing everything required in response to the crisis. This means endorsing the country-specific recommendations to guide our policies and budgets, adopting the “Compact for growth and jobs”, launching the final phase of work towards a new Multiannual Financial Framework (MFF) mobilised in support of growth and jobs, and, last but not least, setting our Economic and Monetary Union (EMU) on a new path…”

Therefore, the Commission has been pushing for deeper economic integration as one of the remedies to the current crisis. This new step in European integration would complement the monetary union. In this context, the Commission is putting forward the concept of a banking union.

The European banking union is not a new legal instrument yet. It is a political vision for more EU integration, which will build on recent major steps to strengthen the regulation of the banking sector and go further.

The concept of a banking union was put forward by President Barroso at the last informal European Council, which took place on 23 May. It has been attracting a lot of attention in the political debate since this meeting and ranks high on the agenda of the next European summit.

The full benefits from deepening the economic and monetary union and from creating the banking union could only be reaped by the development of the fiscal union. The full benefits from deepening the economic and monetary union and from creating the banking union could however only be reaped by the development of the fiscal union.The full benefits from deepening the economic and monetary union and from creating the banking union could however only be reaped by the development of the fiscal union.

The President of the European Council will present a report in close collaboration with the President of the European Commission, the Chair of the Eurogroup and the President of the European Central Bank to the next European Council (28-29 June). In the context of the preparation of this report, the main building blocks towards a deeper economic and monetary integration including the banking union and the fiscal union will be extensively discussed as well as the working methods.

Once this vision is agreed at political level, the Commission will propose the necessary measures for implementation. The Commission could make proposals as early as Autumn 2012. And it also wants the Council and EP to accelerate the decision-making process on key legislation already in the pipeline.

Barroso added: “I want, once again, to pay tribute to the courage and exceptional resilience of the Greek people. A lot of sacrifices are being demanded from them to redress their economy and move into a prosperous future.

The second economic adjustment programme agreed between Greece and the Eurogroup is the foundation to achieve this goal. We stand ready to continue to support Greece in its endeavour…”

President of the European Council Herman Van Rompuy ahead the G20 summit in Los Cabos, Mexico argued: “…We more than share the worries about the debt crisis in the Euro area. It’s in our own interest to overcome this crisis… The crisis has affected different countries in different ways. These divergences were reflected in the current account of the balance of payments. Today these divergences are decreasing significantly. So are the fiscal deficits in the Euro area. A common currency needs this convergence.

We continue also combining three ways of tackling this crisis: reforms at the level of the Member States and at the level of the Euro area; promoting economic growth with an active agenda on investment and at the same time ensuring differentiated fiscal consolidation; crisis management with new financial and governance tools (for instance recapitalising the banks) and at the same time deepening our economic and monetary union, so that the euro becomes an irreversible project…”

“…The Euro area Member States are determined, all the more after the choice made by the Greek people. Greece wants to stay in the eurozone. We are confident that the new Greek government will take ownership of the adjustment programme to which the Greek authorities had committed earlier this year. This is the basis upon which to build to foster growth, prosperity and jobs for the Greek people…”

Finally, European Parliament President Martin Schulz made the following statement on the results on parliamentary elections in Greece: “I welcome the results of the general elections in Greece. The results show a broad and clear support in favour of Greece staying in the euro zone.

I salute the efforts of the Greek people to overcome the crisis. They have made great sacrifices. I hope the burden of the reforms will be spread more equally to achieve greater social justice.

I hope that Greece will rapidly form a government that breaks the political deadlock and pursues the required reforms to overhaul the economy and Greek public finances. The Greek people deserve a stable and prosperous future.

I congratulate Antonis Samaras and his New Democracy party for winning the elections and I encourage the Greek political forces to form a responsible coalition government in the coming days.

I am particularly pleased with New Democracy’s declaration that they will broadly stick to commitments Greece has made to the European Union.

The new Greek government will be able to count on our constructive cooperation in possible fine-tuning of its reform strategy and economic targets. If Greece sticks to its commitments, the EU can examine what could be done further to solve the crisis.”

On 21 February 2012, the Eurogroup agreed on a second economic adjustment programme for Greece. The implementation of the economic policies outlined in the Memorandum of Understanding on Specific Policy Conditionality will contribute to reduce the Greek public debt to 117% of GDP by 2020. It was agreed that the official sector financing of the programme would amount to EUR 130 billion until 2014, additional to the amounts committed in the first financing programme.

The release of the tranches is based on compliance with quantitative performance criteria and a positive evaluation of progress made with respect to the policy criteria laid down in Council Decision 2011/734/EU of 12 July 2011 (as amended on 8 November 2011 and 13 March 2012) and the Memorandum of Understanding setting the economic policy conditionality, which was signed on 14 March 2012.

On 19 March 2012, the first instalment (EUR 5.9 billion) of the first tranche (EUR 14.5 billion) of the new financing programme was paid by the EFSF to Greece. Greece also received EUR 1.6 billion from the IMF. By May 2012, Greece has received EUR 147.5 billion from official financing under the first and the second programme.

On 18 April 2012, the Commission adopted a communication on ‘Growth for Greece’ highlighting the positive impact that full and effective implementation of the economic adjustment programme can have by laying the foundations for growth, investment and social renewal. This Communication identifies ways to maximise the impact of early deliverables through swift actions and EU support.

The economic crisis and subsequent fiscal consolidation measures have had an impact on the ability of Greece to achieve the Europe 2020 goals, especially the socially oriented ones. Nevertheless, the structural reforms, particularly those in the labour market, the liberalisation of several sectors and a number of measures to improve the business environment, will help promote competition, spur productivity, increase employment and reduce production costs, thus contributing to an increase in employment and limiting poverty and social exclusion in the medium term. Despite the economic crisis, Greece has continued to work towards achieving the environmental goals of Europe 2020.

A strategic re-programming of the Structural Funds is underway, with a focus on support to youth employment and competitiveness (in particular SME’s). The new measures strengthen actions in the areas of employment passport, training and professional qualifications and access to finance for Small and Medium Enterprises.

Greece has made a number of commitments under the Euro Plus Pact. The commitments, and the implementation of the commitments presented in 2011, relate to fostering employment, improving competitiveness, enhancing sustainability of public finances and reinforcing financial stability.

President of the European Council Herman Van Rompuy visited Cyprus. He met with President Demetris Christofias, President of the House of Representatives Yiannakis Omirou and government ministers to discuss the upcoming Cyprus EU Presidency.

During his visit, Van Rompuy addressed the Parliament of Cyprus yesterday. He, inter alia said:

“President Christofias and myself have had a very fruitful meeting today. A working meeting. We discussed two main topics: the outlook for the Cypriot Presidency, and the preparations of the June European Council. Let me say a few words about the key points of our discussion.

A few days ago, on the 23rd May, President Christofias, other European leaders, as well as myself have reached a common understanding on how to boost growth and jobs in Europe.

The discussion about growth is not new. We already share a growth strategy and it has been a constant concern. However, our ongoing work on growth has been overshadowed by our vital efforts to ensure financial stability in the Eurozone. But it is no less important.

And there should be no misunderstanding: it is obvious that opposing “deficit reduction” and “growth” is a false debate. They are two sides of the same coin. Without sound public finances there can be no sustainable growth; but without sustainable growth, the measures to bring our debt levels under control do not attain their full impact.

In the short term we all agreed that we should structure our work around three pillars based on the Europe 2020 strategy.

First, we will mobilise EU policies to fully support growth. For example, rapid progress is needed on important legislative proposals, such as the Single Market Act or the Energy Efficiency Directive. We should also finalise the European patent before the end of the Danish Presidency. The European institutions need to pursue their work on how to better use international trade as engine for growth – several major trade agreements are under way.

Second, we will step up our efforts to finance the economy through investments and better access of SMEs to credit, to complement reforms. We invited the European Investment Bank Board to consider an increase of capital by June to be used in supporting projects across the EU. We welcome the agreement on the pilot on project bonds. And we look forward to the report from the Commission on reprogramming of the current structural funds to support growth and jobs.

Third, we will strengthen job creation. We need reforms and measures to support the labour demand and job-creation. National Job Plans should be given high prominence and be fully used, to exploit synergies between the EU and national level instruments, in particular to combat youth unemployment.

At the end of June, just before the change of rotating Presidencies, the European leaders will meet in Brussels and will discuss the EU’s future Multiannual Financial Framework 2014-2020 for the very first time at the summit level, in the context of the growth agenda in all its forms.

This discussion will set the stage for the high-level negotiations, which will continue during the Cypriot Presidency. Our goal is to conclude them by the end of this year to equip the EU with a growth and job-enhancing tool, which will support – both directly and indirectly – thousands of investments in different areas, from research and development, to enterprises, to transport or energy infrastructure, as well as people seeking jobs or upgrading qualifications.

To achieve best possible results, we, the Cypriot Presidency and myself, need to cooperate very closely and harmoniously, and we will. This is also the topic of our discussion today.

We have also discussed other important initiatives, which will need to be concluded under the Cypriot Presidency, such as levers of the Single Market Act, the completion of the Asylum Package and the proposals from the financial services package.”

EU High Representative Catherine Ashton said: “The EU sanctions target the Syrian regime, not the civilian population. As long as the repression continues, we will continue to put pressure on those responsible for it.”

This is the fifteenth time the EU imposes restrictive measures against the Syrian regime since the start of the violent repression against the civilian population. Today’s decisions bring the total number of persons subject to sanctions to 128 whereas 43 entities are now affected by an EU asset freeze.

The EU reiterates its call on the Syrian authorities to fully and immediately comply with the Joint UN-League of Arab States Special Envoy Kofi Annan’s plan as endorsed by UNSC resolutions 2042 and 2043 and abide by all their commitments to the UN. The EU recalls that the main responsibility for the ceasefire and the successful implementation of the plan lies with the Syrian authorities. The Syrian government must ensure without delay the necessary conditions for an effective operation and full and fast deployment of the UN observation mission, including full freedom of movement and agreement on the use of air assets. It must fully withdraw its troops and heavy weapons from population centres. The EU is deeply concerned about the continued violence in Syria, including the recent deadly bomb attacks, notably the ones in Damascus on 10 May. Acts of terrorism cannot be justified under any circumstances.

The EU underlines that a complete cessation of violence by all parties is an essential step in the full implementation of Kofi Annan’s Plan, whose crucial goal is to facilitate a peaceful Syrian-led and inclusive dialogue leading to a political solution that meets the democratic aspirations of the Syrian people on the basis of the relevant resolutions of the UN Security Council, UN General Assembly and League of Arab States.

The EU recalls its full support to Kofi Annan’s six point plan, welcomes the progress to date to deploy members of the UN supervision mission to Syria (UNSMIS) and urges continued prompt deployment of the full mission. It recalls that the Syrian authorities are responsible for ensuring the security and safety of the mission. The EU and its Member States are providing support to the mission, as requested by the UN. The EU calls on all States concerned, and in particular the Members of the UN Security Council, to continue to support Kofi Annan and use all their influence to ensure that the UNSC resolutions 2042 and 2043 are fully implemented. The EU underlines that the six-point plan is not an open-ended offer and that the plan and the deployment of UNSMIS constitute the best opportunity to support a peaceful solution to the crisis. It recalls that the UNSC remains seized of the matter.

The EU remains extremely concerned by the human rights situation in Syria, in particular the systematic and widespread human rights violations committed by the regime. It condemns the Syrian government’s increased use of targeted assassinations and arbitrary detentions as a means of repressing all opposition. The Syrian regime must immediately release all political prisoners and human rights defenders, and ensure freedom to demonstrate peacefully. The EU recalls that all those responsible for human rights violations should be held accountable.

The EU calls on all sides to respect the safety of humanitarian workers and deplores the death of two humanitarian workers killed on 24 and 26 April. The EU reiterates its call on the Syrian authorities to grant immediate, unimpeded and full access of humanitarian organisations to all areas of Syria in order to provide relief to the one million people identified as in need of humanitarian assistance. The UN Humanitarian Response Plan needs to be implemented immediately and humanitarian capacities in the country strengthened. The EU continues to support the efforts made by neighbouring countries to host Syrian refugees who fled violence in Syria.

The European Union remains committed to the Syrian people’s struggle for freedom, dignity and democracy. The EU urges all opposition groups to continue to support Kofi Annan’s efforts and to be ready to provide leadership and engage in a national political process as foreseen in the six point plan endorsed by UNSC. The Syrian National Council and other opposition groups must pursue their efforts to put aside their differences and to agree on a set of shared principles and mechanism under the auspices of the League of Arab States for working towards an inclusive, orderly and peaceful transition in Syria.

Finally, the EU approved today further designations of individuals and entities to be subject to restrictive measures. The EU will continue its sanctions policy targeting the regime, not the civilian population, as long as repression continues. The EU will also continue to urge the international community to join its efforts, in taking steps to apply and enforce restrictive measures on the Syrian regime and its supporters. It calls on all Syrians to dissociate themselves from the repressive policy of the regime in order to facilitate a political transition.”

Rompuy referred to four basic needs for businesses: ideas, an innovative environment, especially in industry, people, with all sorts of skills and abilities, capital, to finance investments and markets, to sell and to source. These are “at the heart of Europe’s growth strategy. Innovation and research, bank credit and venture capital, labour markets, international trade…” he said, adding a fifth key need: stability. “Political, social, economic and financial stability. It is a precondition for the four others, the basis of confidence and a core function of Government.”

Rompuy stressed: “…fiscal consolidation is not an objective in itself, it is a prerequisite for sustainable growth. Structural reforms remain the main lever at our disposal. Their effects are not immediate nor can they be, but they will make a difference over time, and create jobs in due course. We must tell the truth. There are no magic formulas. Reforms take time and so does their impact on growth and jobs.”

“…Europe needs structural economic growth, and we can deliver it… This is the highest priority for European leaders, and we are working in close contact to make it happen. We will be meeting again in June within the European Council to take important decisions and I do not exclude convening an informal Leaders’ dinner at an earlier date for an open exchange of views on how best to prepare matters for June,” Rompuy noted.

“We have to engage in the battle of ideas. Fiscal consolidation does not just equal momentary austerity. It also means investing in the future. It is an exercise in making the right, future-oriented choices. Cuts and taxes need to be fair. Even a growth policy needs choices and sacrifices, but these should not be borne by one social group or generation. Some create the impression (or the illusion) that a growth policy is easy. This is not at all the case. It is a moment of truth. We have to shape change, otherwise it will be imposed on us.”

“The priority now is to make the second programme work. This is our collective task: supporting the Greek authorities and the Greek people. To that end, the Commission is already taking concrete steps: Together with those Commissioners most closely involved, I have had very concrete talks with Prime Minister Papademos and his team about getting key growth-enhancing decisions taken immediately. As you will have seen from my letter, we have agreed to concentrate on a number of key priorities. Improving youth employment, promoting a more business-friendly environment, providing liquidity to SMEs, sweeping away barriers to the absorption of structural funds.

“These are all areas where we can make real progress in weeks, not months or years. The Commission Task Force under Horst Reichenbach is currently on the ground discussing how to put these measures into practice with the Greek government.

“And finally, just yesterday I held a meeting with President Hoyer of the EIB, the European Investment Bank, to examine how our support for Greece can be made more effective. To cement this approach, I intend, in the coming weeks, to present, together with Vice President Rehn, a Communication on growth and jobs for Greece, taking stock of the progress that has been made and setting out the top priorities for the future. As I set out in the Roadmap to Stability and Growth, finding a lasting solution to the problems in Greece is an essential prerequisite for stability. Without stability there is no confidence. And without confidence we will not get growth and jobs…”