MEPs of the European Parliament's Economic and Monetary Committee (ECON) and 'Budgets' Committee (BUDG) voted (59 votes in favour, 25 against, 0 abstentions) on Wednesday 20 February in favour of a draft report by Pedro Silva Pereira (S&D, Portugal) and Vladimír Maňka (S&D, Slovakia) on the creation of a European Monetary Fund (EMF), advocating democratisation and inclusion in the EU legal framework of the European Stability Mechanism (ESM).
This vote echoes the European Commission's proposal of December 2017, as part of a series of suggestions to deepen Economic and Monetary Union (EMU), to set up a EMF to replace the current ESM (see EUROPE 11920). Among the institution's recommendations, the ideas were then put on the table to incorporate the permanent rescue fund for the euro area into the EU's legal framework and to make the ESM accountable to the Parliament to some extent.
A vote on this text was initially scheduled in the European Parliament’s ECON and BUDG Committees on 7 February, but it had been postponed at the request of the EPP (see EUROPE 12188).
In the voted report, MEPs welcome the two above-mentioned recommendations of the European Commission. In particular, they want the Director General of the future reformed MES (now Klaus Regling) to be elected by the European Parliament, on a proposal from the EU Council. In addition, the role of national parliaments should be strengthened for them. It should also be noted that it is recommended here to keep the name ESM.
On the other hand, on the substance, parliamentarians here defend access to preventive financial assistance instruments, in particular to the Precautionary Conditioned Credit Line (PCCL). In addition, they are in favour of including a certain share of the EU budget in the ESM resources.
An article in the report also mentions the need to take into account, when deciding on financial assistance plans, the social impact of the measures envisaged.
Finally, following the example of what was agreed by the Heads of State or Government at the December Euro Summit, MEPs call for the ESM to act as a 'common backstop' for the Single Resolution Fund (SRF) before 2024 (see EUROPE 12160).
On the Eurogroup side, although a reform of the ESM is indeed the ministers' agenda, the idea of incorporating the ESM into the EU's legal framework is not on the agenda today (see EUROPE 12177). (Original version in French by Lucas Tripoteau)