BRUSSELS (MNI) – The following is the full text of the agreement by
Eurozone heads of state and government in Brussels Thursday night:

We reaffirm that all euro area members must conduct sound national
policies in line with the agreed rules and should be aware of their
shared responsibility for the economic and financial stability in the

We fully support the efforts of the Greek government and welcome
the additional measures announced on 3 March which are sufficient to
safeguard the 2010 budgetary targets.

We recognize that the Greek authorities have taken ambitious and
decisive action which should allow Greece to regain the full confidence
of the markets. The consolidation measures taken by Greece are an
important contribution to enhancing fiscal sustainability and market

The Greek government has not requested any financial support.

Consequently, today no decision has been taken to activate the
below-mentioned mechanism. In this context, Euro area member states
reaffirm their willingness to take determined and coordinated action, if
needed, to safeguard financial stability in the euro area as a whole, as
decided the 11th of February.

As part of a package involving substantial International Monetary
Fund financing and a majority of European financing, Euro area member
states are ready to contribute to coordinated bilateral loans.

This mechanism, complementing International Monetary Fund
financing, has to be considered ultima ratio, meaning in particular that
market financing is insufficient. Any disbursement of the bilateral
loans would be decided by the euro area member states by unanimity
subject to strong conditionality and based on an assessment by the
European Commission and the European Central Bank.

We expect Euro-Member states to participate on the basis of their
respective ECB capital key. The objective of this mechanism will not be
to provide financing at average euro area interest rates, but to set
incentives to return to market financing as soon as possible by
risk-adequate pricing.

Interest rates will be non-concessional, i.e. not contain any
subsidy element.

Decisions under this mechanism will be taken in full consistency
with the Treaty framework and national laws.

We reaffirm our commitment to implement policies aimed at restoring
strong, sustainable and stable growth in order to foster job creation
and social cohesion.

Furthermore, we commit to promote a strong coordination of economic
policies in Europe. We consider that the European Council must improve
the economic governance of the European Union and we propose to increase
its role in economic coordination and the definition of the European
Union growth strategy.

The current situation demonstrates the need to strengthen and
complement the existing framework to ensure fiscal sustainability in the
Eurozone and enhance its capacity to act in times of crises.

For the future, surveillance of economic and budgetary risks and
the instruments for their prevention, including the Excessive Deficit
Procedure, must be strengthened.

Moreover, we need a robust framework for crisis resolution
respecting the principle of member states’ own budgetary responsibility.

We ask the President of the European Council to establish, in
cooperation with the Commission, a task force with representatives of
Member States, the rotating presidency and the ECB, to present to the
Council, before the end of this year, the measures needed to reach this
aim, exploring all options to reinforce the legal framework.

–Brussels: 0032 487 (0) 32 803 665,

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