Commission communication focuses on four areas of reform
The Commission communication focuses on four areas of reform – (i) creation
of a European Monetary Fund, (ii) integration of the Fiscal Compact into EU law,
(iii) a Eurozone budget line in the EU budget and (iv) a European Minister of
Economy and Finance.
Measures that lead to the completion of banking/capital
markets union, such as a fiscal backstop for the SRF, might be sensible but
require substantial risk reduction in national banking sectors ex ante to be
accepted by all member states. Transferring the Fiscal Compact into EU law is
warranted under the aspect of legal consistency and avoidance of duplication
while the arguments to integrate the ESM/future EMF into EU treaties is much
weaker. Proposals regarding the creation of a European Finance Minister and a
EU budget line to support reform efforts and finance a general stabilisation
function are not convincing in terms of addressing the EMU’s underlying
shortcomings adequately.
EU Forecast
euf:ba.18.j:130/nws-01