|Author (Corporate)||European Commission|
|Series Details||(2017) 827 final|
The EMF is proposed to be anchored within the EU's legal framework and built on the structure of the European Stability Mechanism (ESM). This includes its financial and institutional structures, like when it comes to the role played by national parliaments. It aims to assist Euro area Member States in financial distress and to provide the common backstop to the Single Resolution Fund (SRF) and act as a last resort lender in order to facilitate the orderly resolution of distressed banks.
More rapid decision-making in cases of urgency and more direct involvement in the management of financial assistance programmes are also foreseen. Over time, the EMF could also develop new financial instruments, for instance to support a possible stabilisation function.
The proposal is part of a broader set of initiatives to reform the Economic and Monetary Union (EMU) put forward by the European Commission.
The European Stability Mechanism (ESM) was set up in October 2012 at the height of the crisis. The pressure of events at the time led to an intergovernmental solution being found. It is seen as having a decisive role in safeguarding the stability of the Eurozone by assisting Member States to regain or maintain access to sovereign bond markets.
Its transformation into a European Monetary Fund aims to further strengthen its institutional anchoring. It intends to create new synergies within the EU framework, notably in terms of transparency, judicial review and efficiency of the EU’s financial resources and thus offering a better support to Member States. It is also supposed to help improve further the cooperation with the Commission and accountability to the European Parliament.
The European Commission adopted on 6 December 2017 a proposal for a Council Regulation establishing a European Monetary Fund (EMF).
|Subject Categories||Economic and Financial Affairs|
|Countries / Regions||Europe|