|Courtesy of EUR/USD (FreeStockCharts.com)|
"Turning to fiscal policies, all euro area governments urgently need to do their utmost to support fiscal sustainability in the euro area as a whole. A new fiscal compact, comprising a fundamental restatement of the fiscal rules together with the fiscal commitments that euro area governments have made, is the most important precondition for restoring the normal functioning of financial markets. Policy-makers need to correct excessive deficits and move to balanced budgets in the coming years by specifying and implementing the necessary adjustment measures. This will support public confidence in the soundness of policy actions and thus strengthen overall economic sentiment.
To accompany fiscal consolidation, the Governing Council has repeatedly called for bold and ambitious structural reforms. Going hand in hand, fiscal consolidation and structural reforms would strengthen confidence, growth prospects and job creation. Key reforms should be immediately carried out to help the euro area countries to improve competitiveness, increase the flexibility of their economies and enhance their longer-term growth potential. Labour market reforms should focus on removing rigidities and enhancing wage flexibility. Product market reforms should focus on fully opening up markets to increased competition."
And just now, courtesy of The Telegraph's live coverage of the European debt crisis, a draft from the EU summit meeting was released. But according to Reuters (via Business Insider), "Germany immediately rejects key elements". UPDATE 12/9/2011: Read the official EU Council statement here. Last but not least, take a look at EUR/USD's chart going back to June 2010 with important support levels to watch should things turn for the worse (moved the chart to the top). Again, watch how currencies and risk-assets react to these releases and news flows.