Decision-making at the European Monetary Fund

13.10.2017

Question for written answer P-006456-17
to the Commission
Rule 130
Pirkko Ruohonen-Lerner (ECR)

For decades, the International Monetary Fund has exercised decision-making responsibilities during crises. Its director has traditionally been chosen from Europe. The President of the Commission now wishes to set up a new institution, even though an effective monetary fund already exists.

Since the reasons for the establishment of a European Monetary Fund seem to originate in a political desire to make additional loans to euro area countries that are insolvent, political influence will be a key issue at the future new institution. In his speech on 13 September 2017, the President of the Commission proposed setting up a ‘European Monetary Fund’ based on the European Stability Mechanism (ESM). The ESM is a limited liability company against which no court proceedings can be brought and in which, in exceptional circumstances, decisions may be taken by a majority decision with 85% support.

1. Is it the intention that, at the planned European Monetary Fund, decisions should likewise, when necessary, be taken by majority decision?

2. Is there a possibility that, as a result of a majority decision, Finland, for example, may be compelled to support countries that have failed to manage their economies and/or are in economic crisis?

3. Is it possible that a policy may be pursued at the European Monetary Fund which does not restore the solvency of problem countries as quickly as would have happened under the guidance of the International Monetary Fund?