Establishment of the European Monetary Fund

06-03-2019

On 6 December 2017, the European Commission made a proposal to transform the intergovernmental European Stability Mechanism (ESM) into a European Monetary Fund (EMF) under EU law. It would get additional prerogatives, and the decision-making mechanisms would be fundamentally altered, shifting power away from the Member States. The proposal has met considerable resistance at Council level, and at the December 2018 Euro Summit it was decided to maintain the ESM's intergovernmental character. The European Parliament is expected to vote on an interim report during the March I plenary session, with a view to its future consent vote on the proposal – should the Council reach agreement on it.

On 6 December 2017, the European Commission made a proposal to transform the intergovernmental European Stability Mechanism (ESM) into a European Monetary Fund (EMF) under EU law. It would get additional prerogatives, and the decision-making mechanisms would be fundamentally altered, shifting power away from the Member States. The proposal has met considerable resistance at Council level, and at the December 2018 Euro Summit it was decided to maintain the ESM's intergovernmental character. The European Parliament is expected to vote on an interim report during the March I plenary session, with a view to its future consent vote on the proposal – should the Council reach agreement on it.