When questioned by euro area finance ministers, the Legal Service of the Council of the European Union considers that a euro area country cannot be forced to participate in a possible intergovernmental agreement (IGA) to provide additional funding for the future fiscal capacity of the Eurozone.
“The EU Treaties or an act of EU secondary law (as the BICC Regulation) cannot legally oblige Member States to conclude the IGA referred to in the term sheet, or compel them to contribute to the budget of the Union beyond the framework of their financial obligations as defined by the own resources system”, say the EU Council's lawyers in a note dated 15 October, of which EUROPE has obtained a copy.
They go on to say that “[even] if, in the past, intergovernmental treaties in the field of the Economic and Monetary Union (such as the ESM Treaty, the Treaty on Stability, Convergence and Competitiveness, or the IGA on the transfer of contributions to the Single Resolution Fund) have been concluded by all euro area Member States, this fact is a consequence of a wish to maintain political coherence, rather than of a legal obligation that would stem from the EU Treaties or secondary law”.
In Luxembourg at the beginning of October, the Eurogroup made progress in drawing up the budget for the euro area, which should see the light of day in early 2021, at the same time as the next budget cycle for the EU (see EUROPE 12346/2).
In response to the refusal by the Netherlands, supported by Finland and Austria, the Finance Ministers of the Nineteen had requested the expertise of the legal experts on the legal nature of this enabling clause which appears in the term sheet of the future euro area budget and which will allow the euro area countries to contribute to it in addition to their regular contributions to the 2021-2027 multiannual financial framework. (Original version in French by Mathieu Bion)