The European Commission president, José Manuel Barroso, presented a roadmap which is intended to restore confidence in the Euro area and the European Union as a whole. According to the Commission, this programme is created to clarify the doubts over the sustainability of sovereign debt, the stability of the banking system and the European Union's growth prospects.

The Commission presented a roadmap outlining a response to restore confidence in the Euro area and the European Union as a whole. This programme intends to clarify the doubts over the sustainability of sovereign debt, the stability of the banking system and the European Union's growth prospects. According to Mr Barroso, the roadmap charts Europe's way out of the economic crisis. Reactive and piecemeal responses to different aspects of the crisis are no longer sufficient. The EU now need to get ahead of the curve, restoring confidence.

The Commission outlines five areas of action that are interdependent, starting by a decisive response to the problems in Greece. This must include disbursement of the sixth tranche, a second adjustment programme, based on adequate financing through public sector and private sector involvement and continued support from the Commission Task Force. Also, completing Euro area intervention – including making the decisions agreed by the Council on 21 July 2011 operational, maximising the effectiveness of the EFSF, accelerating the launch of the European Stability Mechanism to mid 2012 and the provision of sufficient liquidity by the European Central Bank.

With regard to the current financial situation, the roadmap proposes a fully coordinated approach to strengthen Europe's banks. This should be based on a reassessment by the supervising authorities using a temporary significantly higher capital ratio of highest quality capital after accounting for exposure. Banks should first use private sources of capital, with national governments providing support if necessary. If this support is not available, recapitalisation should be funded via a loan from the EFSF. Pending this recapitalisation, these banks would be prevented by national supervisors from distributing dividends or bonuses.

Besides, speeding up stability and growth-enhancing policies, including rapid implementation of existing commitments on services, energy and free trade agreements is also a priority; swift adoption of pending proposals to enhance growth such as tax initiatives, fast-tracking forthcoming proposals, especially those that extend the benefits of the Single Market and targeted investment at the European Union level, including through project bonds.

Building on the reinforced "six pack" on economic governance recently adopted, the Commission proposed and integrated economic governance for the future, based on the existing treaties, reinforcing the Community approach. and the European semester already adopted, the proposals seek to integrate the European Stability Mechanism and the Stability & Growth Pact into the same fully integrated governance system to increase coherence and efficiency. This would provide new powers for the Commission/Council to intervene in the preparation of national budgets and monitor their execution. Enhanced cooperation should be envisaged in all cases where otherwise decisive action would be held back.