Heads of State and Government within the EU adopted on 14 December the European Council conclusions on completing the Economic and Monetary Union (EMU). They agreed that the priority is to complete and implement the framework for stronger economic governance, including the "six-pack", the Treaty on Stability, Coordination and Governance (TSCG) and the "two-pack", in order to break the vicious circle between banks and sovereigns.

The conclusions on completing the Economic and Monetary Union (EMU) adopted by the European Council on 14 December sets out the next steps in this process, based on deeper integration and reinforced solidarity for the euro area Member States. According to the text, the process of completing EMU will build on the EU's institutional and legal framework. In the light of the adoption by the ECOFIN of the Single Supervisory Mechanism, the European Council stressed that it constitutes a major qualitative step towards a more integrated financial framework.

The European Council also called on the conclusions for the rapid adoption by the co-legislators of the key elements of the so-called "two-pack". Moreover, its immediate priority is to complete and implement the framework for stronger economic governance, including the "six-pack", the Treaty on Stability, Coordination and Governance (TSCG) and the "two-pack".

EU leaders urged the co-legislators to agree on the proposals for a Recovery and Resolution Directive and for a Deposit Guarantee Scheme Directive before June 2013; the Council for its part should reach agreement by the end of March 2013. According to the conclusions, once adopted, these Directives should be implemented by the Member States as a matter of priority. The European Council also looks forward to the Commission's rapid follow up to the proposals of the high level expert group on the structure of the EU banking sector.