Stability mechanism: Constitutional Affairs Committee satisfied with results

One day before Parliament's vote on a proposed EU treaty change to permit the creation of a permanent stability mechanism for the euro zone, Constitutional Affairs Committee MEPs expressed satisfaction with progress made in negotiations with the Member States. MEPs now have guarantees of a stronger involvement of the EU institutions in what, structurally, is nonetheless an intergovernmental mechanism.

On 7 March, Constitutional Affairs Committee MEPs had already approved a text on the proposed treaty change to permit a permanent stability mechanism, in which they criticised the Member States for building an intergovernmental mechanism, rather than an EU one. Thereafter, the two rapporteurs, Elmar Brok (EPP, DE) and Roberto Gualtieri (S&D, IT), kept on negotiating with the Member States with a view to enabling Parliament to deliver a positive opinion on the issue.

"In the last few days our objectives have been achieved", said Elmar Brok at the extraordinary meeting on Tuesday, adding that "we made a contribution to ensure the Commission is involved". He emphasised that Parliament will be involved in the process, as the Council and Commission will consult it regularly. "Now we feel we've made the way free for a positive opinion to be adopted", Mr Brok concluded.

Co-rapporteur Roberto Gualtieri echoed this view: "Parliament will present an opinion that is well-balanced and it covers the essentials", he said, describing the future stability mechanism as an "intergovernmental wagon in an institutional train".

Key achievements

The Committee acknowledged the "positive signals" perceived in letters from the Presidents of the European Council and of the Euro Group, and the Commissioner for monetary policy. In their letters, these institutions note that the Commission will propose a regulation that will clarify the procedures under the mechanism and ensure consistency with the EU multilateral surveillance framework.

Furthermore, the role of the Commission is now clearly defined in the running operations of the mechanism, as requested by the MEPs. The Commission will play a central role within the mechanism in assessing and analysing, as well as in making proposals and monitoring. Parliament will be regularly informed.

Reservation

Though recommending that Parliament endorse the European Council proposal on the Treaty change, the committee reiterates that "it would have been preferable" to comply with the Union method, as stressed also in the opinion of the European Central Bank. The committee adopted its opinion unanimously.

Background

The leaders of the EU Member States decided at their December 2010 summit on a limited Treaty change to allow the establishment of a permanent mechanism to safeguard the stability of the euro zone. This "revision of article 136" of the Treaty requires consultation of Parliament, Commission and the European Central Bank.

Next steps

Parliament will vote on the Treaty change in its plenary session on Wednesday 23 March. The Member States hope to adopt the change formally at the European Council meeting on 24–25 March. Thereafter, the change still needs to be ratified by all 27 Member States. The target date for the stability mechanism's entry into force is 1 January 2013.

Constitutional Affairs Committee

In the chair: Carlo Casini (EPP, IT)