The deepening of Eurozone governance was one of the subjects debated at the Forum Villa d'Este, which was held in Cernobbio (Italy) on 1-3 September.
This debate provided senior European political figures with an opportunity to exchange their observations on the main challenges related to the Eurozone, particularly that of European governance.
The Commissioner for Economic and Financial Affairs, Pierre Moscovici, reiterated his calls for a ‘European finance minister’. Flagging up the democratic deficit within the Eurozone, he called for the creation of a ‘High Representative for Economic and Financial Affairs of the Eurozone’. This position would be “institutionally robust”, as it would combine the current rules of Economic and Financial Affairs Commissioner and President of the Eurogroup, a post to be held until January 2018 by Jeroen Dijsselbloem (see other article).
To legitimise the action of this individual and give the European people a democratic guarantee, Moscovici would like this High Representative to be directly accountable to the European Parliament. This proposal echoes the French plan, in which the French authorities call for a European finance minister (see EUROPE 11783), the French Minister for the Economy and Finance, Bruno Le Maire, told the meeting.
Dijsselbloem, who was less forthcoming on the issue, told CNBC that the Eurozone’s future governance would be a major challenge and that the future of the position he currently holds would be one of the key questions.
Calls for a European monetary fund.
The other major point raised by the Commissioner concerns the creation of a European monetary fund (EMF). This possibility has been the subject of many debates over several months and Moscovici believes that it “could be a very positive step for the Eurozone”, although the fund’s competences have yet to be clarified.
Also speaking to CNBC, Lemaire said that he welcomed recent statements by German Chancellor Angela Merkel leaving the door open for such a fund to be created. The French Minister believes that the Eurozone needs changes and more integration, “which means the creation of the European monetary fund, instead of having the IMF [International Monetary Fund] playing a role within the Eurozone”.
The German legislative elections to be held on 24 September will be key. Lemaire said that if Merkel wins a further term as head of the German government, there could be a “unique window of opportunity” to build an integrated Eurozone and a “European economic continent”. The French President has already announced specific proposals on the future of the European Union, and the governance of the single currency in particular, for the weeks following the German elections, with a view to a roadmap by the end of 2017 (see EUROPE 11851).
Dijsselbloem is hoping for concrete results by mid-January, when he steps down as President of the Eurogroup.
Eurozone governance will be on the agenda of the informal meeting of European finance ministers to be held in Tallinn in mid-September. (Original version in French by Lucas Tripoteau)