The heads of state and government, meeting in Brussels between March 19th and 20th 2009 affirmed that the implementation of the recovery plan of December is progressing well. The fiscal stimulus of over €400 billion will generate new investments, boost demand and create jobs. The Council also emphasised that the single market was central to making the recession in Europe shorter and less severe. Stressing the need to get lending flowing again to businesses and households, it agreed to speed up agreement on pending legislative proposals on the financial sector.

In June, the European Council will take first decisions to strengthen EU financial sector regulation and supervision, to be based on Commission proposals following thorough discussion in the Council on the de Larosière report. Based on the EU's own experience and desire to contribute significantly to shaping the future international governance of the financial sector, it defined the Union's position with a view to the G20 Summit in London on April 2nd 2009.

The European Council also reverted to the issue of energy security. It specifically agreed on orientations for setting up a crisis mechanism to deal with disruptions of supplies. It took further steps in preparation of the Copenhagen Conference on climate change. Finally, it agreed a Declaration launching the Eastern Partnership.

Financial Stability and confidence. Paving the way for the G20 London Summit

The summit defined the Union's position for the next G20 summit in London, which will be crucial in reshaping the global financial system and rebuilding confidence. The European Union will take a leading role at the global level in promoting a swift return to sustainable economic growth; strengthening our ability to manage crises; bringing forward the reform of financial markets; and supporting developing countries in order to avoid putting at risk the progress achieved in recent years, thus undermining their economic and politicalstability.

The Council highlighted that the G20 Summit in London will have a crucial role to play in reshaping the global financial system and rebuilding the confidence of economic actors across the world. To that end, the European Council adopted a joint position and invited the Council and the Commission to ensure appropriate follow-up to the Summit.

EU's agreed language to the G20 Summit

• Leading international action necessary to promote a swift return to sustainable economic growth: In line with the outcome of the Berlin Summit and the G20 ministerial meeting, continue international coordination of fiscal stimulus measures. Implement swiftly planned fiscal stimulus packages. Prepare for an orderly reversal of macroeconomic stimuli.
• Strengthening our ability to manage and prevent crises at the global level: Charge the IMF with monitoring and promoting the implementation of the Action Plan adopted at the G20 Washington summit in November 2008, in the area of financial regulation in close collaboration with the Financial Stability Forum (FSF).
• Better regulating financial markets: Strengthen transparency and accountability to avoid pitfalls of the past, in particular by making macro-prudential supervision a standard part of the financial sector oversight.
• Supporting developing countries in responding to the effects of the crisis: Promote global development as part of the solution to the global crisis and a basis for peace and stability. Honour commitments to increase development assistance. Reaffirm commitment to deliver on the Millennium Development Goals.

Supporting employment

Regarding jobs, a special employment summit will be held in Prague in May 2009, where the social partners will be invited to participate.

Measures taken by Member States to support the real economy and employment should be implemented in a timely, targeted and temporary manner, while respecting the following guiding principles: promoting openness within the internal market and vis-à-vis third countries; ensuring non-discrimination of products and services from other Member States; ensuring consistency with long-term reform objectives.

To that end Member States and the Commission should share information and best practices and pool their efforts to generate synergies. In particular, the Commission's communication of February 25th 2009 established an important framework for action in support of the automotive sector, including enhanced European coordination of schemes for the renewal of car fleets.

Energy and Climate

Energy security is a key priority which needs to be enhanced by improving energy efficiency, diversifying energy suppliers, sources and supply routes, and promoting the Union's energy interests vis-à-vis third countries. In order to deliver on energy security, the EU collectively, as well as each Member State, must be prepared to combine solidarity with responsibility. In that light, the European Council endorsed the broad initiatives set out in the Second Strategic Energy Review (SER) and further refined in the Council (TTE) conclusions of February 19th 2009.

The European Union remains committed to playing a leading role in bringing about a global and comprehensive climate agreement in Copenhagen in December 2009 designed to limit global warming to below 2ºC. To this end, the European Council recalled the EU's commitment to a 30% emission reduction as its contribution to such an agreement provided that other developed countries commit themselves to comparable emission reductions and that advanced developing countries contribute adequately according to their responsibilities and respective capabilities.

The Council conclusions of March 2009 set out in more detail the efforts the EU expects from developed and developing countries, including the need for the overall target for developed countries to be distributed in a manner that is fair and ensures the comparability of efforts.

The European Council further emphasised the importance of building a global carbon market, including a reformed Clean Development Mechanism.

External relations

Finally, the leaders endorsed the Eastern Partnership, which will deepen ties with Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine. This initiative will be officially launched at a summit on May 7th.  The Eastern Partnership will promote stability and prosperity among the EU's Eastern partners covered by the European Neighbourhood Policy. The European Council committed, on the terms set out in the declaration, to a deeper bilateral engagement and to a new multilateral framework.

The European Council was informed by the Presidency of the state of play of preparations of the informal EU-US Summit that will be held on April 5th 2009 in Prague. The European Council reaffirmed the strategic importance of transatlantic relations and agreed that economic issues, energy security and climate change and the strategic approach towards the area between the Mediterranean Sea and the Caspian Sea should in particular be discussed.