This blog post continues the discussion in the entries Transparency during the eurozone crises and Euro crises: European Council eviscerated?, based on my speech at the 22 February 2012 Attac seminar about the implications of the new fiscal discipline in the EU. This text contains some modifications, updates and documentary references, complementing the oral presentation.
I am appalled by the crucial role two coteries, the Eurogroup and the new Euro Summit - both meeting informally – play in European economic policy making. I am disappointed in the way the coordinating General Affairs Council (GAC) and the European Council (EUCO) have failed to grow up, despite the possibilities offered by the Lisbon Treaty.
However, every cloud has a silver lining, or there are pockets of excellence everywhere.
Council press office
Since our discussion with the Council press office last November, some things have improved from the citizen's point of view.
Let us follow the paper trail of the Eurogroup and the official institutions to make our case.
The Council press office has recently added a web page called Eurozone Governance, accessible from the Council's front page, as well as the home page of the European Council. This is an improvement, and the contents have been upgraded. We could even say that the presentation has improved a lot (web page Documents).
After the fact, we learn i.a. that the EU finance ministers have agreed to shore up IMF resources by €150 billion (19 December 2011), the text of the Treaty on stability, coordination and governance in the economic and monetary union (TSCG) – also known as the ”fiscal compact” or the ”stability union” - and the text of the Treaty establishing the European Stability Mechanism (ESM) between the euro countries.
Nowadays, there are also articles about the main issues, with helpful links, so the materials are available in one place, in a much more user friendly manner.
The frequency of press releases has also gone up, and the various conclusions, as well as explanatory and official statements have also been posted.
Democratic debate
If presentation has improved, what am I carping about?
Despite better presentation, the fundamental flaws of structure and procedures remain.
The essence of democratic debate is seeing citizens and media as potential sources of input, not just a nuisance or subjects to be informed about the outcomes.
This is where the Eurogroup and the European Council fail miserably, and the Council configurations largely.
Thus, the Euro Summit which combines traits of the Eurogroup and the European Council is hardly a dream prospect with regard to openness.
Ahead of the Eurogroup Monday evening, we had a short statement (14 February 2012) from the president Jean-Claude Juncker announcing the chief reasons for the postponement of the ordinary meeting. The Eurogroup statement (21 February 2012) on the second bailout package for Greece offers the public highlights about the sacrifices of the euro area taxpayers, the private bondholders and the Greek people, but it does not contain any links to the underlaying documents and assessments. We are supposed to take the decisions on trust.
But this is the crux: They don't really have a mandate from me.
Ralf Grahn
speaker on EU affairs, especially digital policy and law
P.S. 1: For better or for worse, between the global issues and the national level, the European Union institutions and the eurozone coteries shape our future. At the same time we see an emerging European online public sphere. More than 900 euroblogs are aggregated by multilingual Bloggingportal.eu. Is your blog already listed among them? Are you following the debates which matter for your future?
P.S. 2: Referring the anti-piracy treaty #ACTA to the Court of Justice of the European Union (CJEU) marks a lull in the proceedings, but not an end to the political battle. A few moments ago, the online petition launched by @Avaaz for the European Parliament (and the national parliaments) to reject ACTA had already been signed by 2,427,532 netizens, but more are welcome until the official burial.
Today, Saturday 25 February 2012, European citizens join forces through more than 150 demonstrations for open and democratic legislation and Internet freedoms. In Finland Stop ACTA Helsinki convenes in front of the Central Railway Station at 14:00 hours.
Showing posts with label Eurogroup. Show all posts
Showing posts with label Eurogroup. Show all posts
Saturday, 25 February 2012
Friday, 24 February 2012
Transparency during the eurozone crises
On 22 February 2012 Attac Finland and Attac Parliament organised a seminar about the new budgetary discipline in the EU and its implications for socio-economic developments and democracy.
The discussion was kicked off by foreign minister Erkki Tuomioja, who is also the chair of Attac Parliament, and by professor Heikki Patomäki, who is one of the three chairpersons of Attac Finland. Between professor Magnus Ryner, who is a political economist, and the researcher Kenneth Haar, who represents the Corporate Europe Observatory, I made a presentation titled The New Stability Union: Implications for Transparency and Democracy, offering my views from the perspective of an EU citizen.
This blog post and a string of later ones are based on my speech, which I began by asking:
Where are we going in terms of transparency and democracy?
My short answer is: from bad to worse, at least in the short term.
However, some of you might want to know why and how.
Transparency
I'll begin by looking at transparency, or openness, in the European Union, in general, with regard to economic policy and concerning the new stability union, the so called fiscal compact.
The Treaty of Lisbon entered into force on 1 December 2009, so we have seen the new EU ground rules in action for a little more than two years.
The start is quite promising. Right at the top, in Article 1 of the Treaty on European Union, we are told:
Let us now put ourselves in the role of the trusting citizen, who takes this promise of a maximum of openness and closeness at face value.
Instead of building theoretical castles, he or she takes a closer look at economic policy making and the birth of the stability union in the light of available public information.
During these last two years, no questions have been more central to the economic wellbeing of European citizens than the ongoing multiple crises in the eurozone, the efforts to contain the effects and to return to a path towards economic growth and new jobs.
For the sake of brevity, I am going back in history only to the December 2011 summits. The heads of state or government of the euro area countries issued a statement (9 December 2011), where they announced future action in two directions:
- a new fiscal compact and strengthened economic policy coordination;
- the development of stabilisation tools to face short term challenges.
The statement itself contained main points about the common understanding, but no exact documentary references.
How about the guarantees for openness during the operations to contain and to overcome the crises?
Eurogroup
The informal Eurogroup, where finance ministers meet ”to discuss questions related to the specific responsibilities they share with the single currency”, is at least referred to in a protocol (No 14) annexed to the Treaties.
Euro Summit
The eurozone summits have just been convened without any particular legal basis. The Euro Summit has now been institutionalised, turned into a permanent feature with at least biannual meetings and a permanent president.
The Euro Summit is currently based only on the conclusions of the eurozone heads of state or government themselves (Euro Summit statement 26 October 2011, paragraphs 30-33 and Annex 1), although the so called fiscal compact tries to catch up with reality (Article 12 TSCG).
Good governance and transparency?
We are looking at economic policy making for the euro area, which consists of 17 countries, with a total population of 332 million people (Eurostat) – bigger than the home of the US dollar, with 313 million (US Census Bureau).
What do we have? Now we have not only one, but two informal conclaves preparing and agreeing on crucial issues in the dark, before they give the public a rough outline of what has been agreed (if not formally decided).
Ralf Grahn
speaker on EU affairs, especially digital policy and law
P.S. 1: For better or for worse, between the global issues and the national level, the European Union institutions and the eurozone coteries shape our future. More than 900 euroblogs are aggregated by multilingual Bloggingportal.eu. Is your blog already listed among them? Are you following the debates which matter for your future?
P.S. 2: Referring the anti-piracy treaty #ACTA to the Court of Justice of the European Union (CJEU) marks a lull in the proceedings, but not an end to the political battle. A few moments ago, the petition launched by @Avaaz for the European Parliament (and the national parliaments) to reject ACTA had already been signed by 2,422,421 netizens, but more are welcome until the official burial.
Tomorrow, Saturday 25 February 2012, European netizens join forces through more than 150 demonstrations for open and democratic legislation and Internet freedoms. In Finland Stop ACTA Helsinki convenes in front of the Central Railway Station at 14:00 hours.
The discussion was kicked off by foreign minister Erkki Tuomioja, who is also the chair of Attac Parliament, and by professor Heikki Patomäki, who is one of the three chairpersons of Attac Finland. Between professor Magnus Ryner, who is a political economist, and the researcher Kenneth Haar, who represents the Corporate Europe Observatory, I made a presentation titled The New Stability Union: Implications for Transparency and Democracy, offering my views from the perspective of an EU citizen.
This blog post and a string of later ones are based on my speech, which I began by asking:
Where are we going in terms of transparency and democracy?
My short answer is: from bad to worse, at least in the short term.
However, some of you might want to know why and how.
Transparency
I'll begin by looking at transparency, or openness, in the European Union, in general, with regard to economic policy and concerning the new stability union, the so called fiscal compact.
The Treaty of Lisbon entered into force on 1 December 2009, so we have seen the new EU ground rules in action for a little more than two years.
The start is quite promising. Right at the top, in Article 1 of the Treaty on European Union, we are told:
This Treaty marks a new stage in the process of creating an ever closer union among the peoples of Europe, in which decisions are taken as openly as possible and as closely as possible to the citizen.
Let us now put ourselves in the role of the trusting citizen, who takes this promise of a maximum of openness and closeness at face value.
Instead of building theoretical castles, he or she takes a closer look at economic policy making and the birth of the stability union in the light of available public information.
During these last two years, no questions have been more central to the economic wellbeing of European citizens than the ongoing multiple crises in the eurozone, the efforts to contain the effects and to return to a path towards economic growth and new jobs.
For the sake of brevity, I am going back in history only to the December 2011 summits. The heads of state or government of the euro area countries issued a statement (9 December 2011), where they announced future action in two directions:
- a new fiscal compact and strengthened economic policy coordination;
- the development of stabilisation tools to face short term challenges.
The statement itself contained main points about the common understanding, but no exact documentary references.
How about the guarantees for openness during the operations to contain and to overcome the crises?
Eurogroup
The informal Eurogroup, where finance ministers meet ”to discuss questions related to the specific responsibilities they share with the single currency”, is at least referred to in a protocol (No 14) annexed to the Treaties.
Euro Summit
The eurozone summits have just been convened without any particular legal basis. The Euro Summit has now been institutionalised, turned into a permanent feature with at least biannual meetings and a permanent president.
The Euro Summit is currently based only on the conclusions of the eurozone heads of state or government themselves (Euro Summit statement 26 October 2011, paragraphs 30-33 and Annex 1), although the so called fiscal compact tries to catch up with reality (Article 12 TSCG).
Good governance and transparency?
We are looking at economic policy making for the euro area, which consists of 17 countries, with a total population of 332 million people (Eurostat) – bigger than the home of the US dollar, with 313 million (US Census Bureau).
What do we have? Now we have not only one, but two informal conclaves preparing and agreeing on crucial issues in the dark, before they give the public a rough outline of what has been agreed (if not formally decided).
Ralf Grahn
speaker on EU affairs, especially digital policy and law
P.S. 1: For better or for worse, between the global issues and the national level, the European Union institutions and the eurozone coteries shape our future. More than 900 euroblogs are aggregated by multilingual Bloggingportal.eu. Is your blog already listed among them? Are you following the debates which matter for your future?
P.S. 2: Referring the anti-piracy treaty #ACTA to the Court of Justice of the European Union (CJEU) marks a lull in the proceedings, but not an end to the political battle. A few moments ago, the petition launched by @Avaaz for the European Parliament (and the national parliaments) to reject ACTA had already been signed by 2,422,421 netizens, but more are welcome until the official burial.
Tomorrow, Saturday 25 February 2012, European netizens join forces through more than 150 demonstrations for open and democratic legislation and Internet freedoms. In Finland Stop ACTA Helsinki convenes in front of the Central Railway Station at 14:00 hours.
Thursday, 17 February 2011
EU Economic and Financial Affairs Council (Ecofin) 15 February 2011
The video of the Eurogroup press conference Monday, 14 February 2011, has now been posted on the Council website, under the heading European Stability Mechanism. You can also find the video recording of the press conference following the official Economic and Financial Affairs Council (Ecofin) 15 February 2011.
Here is an overview of the Ecofin documents published, even if they reflect only some of the macroeconomic issues being discussed.
Ecofin conclusions
The Ecofin conclusions seem to be available in English only, at this stage:
3067th Council meeting Economic and Financial Affairs; Brussels, 14 February 2011 (document 6514/11; 18 pages)
The date is still wrong, because the meeting took place 15 February 2011.
The general and thematic conclusions form a hefty reading package. The issues include economic governance, steps on savings taxation and anti-fraud agreements, guidelines for the 2012 EU budget and preparation of the March European Council.
European Semester
Separate conclusions about macroeconomic and fiscal guidance were adopted, but only English and French language versions are accessible at this time (document 5991/11):
Council conclusions on European Semester: macroeconomic and fiscal guidance; 3067th ECONOMIC and FINANCIAL AFFAIRS Council meeting; Brussels, 15 February 2011 (5 pages)
Conclusions du Conseil sur Semestre européen: Orientations macroéconomiques et budgétaires;
3067ème session du Conseil AFFAIRES ECONOMIQUES et FINANCIERES; Bruxelles, 15 février 2011
Combating tax fraud
There are English, French and Hungarian versions of the conclusions concerning efforts against tax fraud (document 6554/11). Here is the English text:
Combating tax fraud: Adoption of directive on strengthened mutual assistance and the exchange of information (document 6554/11; 2 pages)
EU budget 2012
The member states agreed on guidelines for the negotiations regarding the budget of the European Union for 2012 (document 5895/11). There seem to be 22 language versions available, described as drafts. Here are the budget guidelines in English:
Draft Council conclusions on the budget guidelines for 2012 (9 pages)
***
It is intellectually stimulating to have the common euro currency, but basically 17 (or 27) different national economic policies.
Ralf Grahn
P.S. Yesterday foreign minister Carl Bildt presented the annual foreign policy statement of the Swedish government in the parliamentary debate: Utrikesdeklarationen 2011 in Swedish and the Government Foreign Policy Statement 2011 in English.
P.S. 2: Political and macroeconomic guidelines emanating (or not) from the European Council at the top are indispensable to know, but details of internal market reform (Single Market Act) and the Europe 2020 strategy (EU2020 flagship initiatives) are going to be among the recurring themes as well. On my Euroblogs I want to discuss legal and political issues relevant to European enterprises, jobs, employers and employees, consumers and citizens, especially in cross-border situations.
Hopefully my blogs succeed in educating and guiding readers towards relevant sources. For me the blogs offer disciplined study as basic training and continuous updating for my teaching and legal counseling activities.
My blogs are: upstream Grahnlaw (in English), Grahnblawg (in Swedish) and Eurooppaoikeus (in Finnish), as well as usually downstream the trilingual Grahnlaw Suomi Finland (later, with more sediment).
If you are interested in the European economy, business, politics or law, we can get acquainted through Twitter @RalfGrahn or Facebook.
Here is an overview of the Ecofin documents published, even if they reflect only some of the macroeconomic issues being discussed.
Ecofin conclusions
The Ecofin conclusions seem to be available in English only, at this stage:
3067th Council meeting Economic and Financial Affairs; Brussels, 14 February 2011 (document 6514/11; 18 pages)
The date is still wrong, because the meeting took place 15 February 2011.
The general and thematic conclusions form a hefty reading package. The issues include economic governance, steps on savings taxation and anti-fraud agreements, guidelines for the 2012 EU budget and preparation of the March European Council.
European Semester
Separate conclusions about macroeconomic and fiscal guidance were adopted, but only English and French language versions are accessible at this time (document 5991/11):
Council conclusions on European Semester: macroeconomic and fiscal guidance; 3067th ECONOMIC and FINANCIAL AFFAIRS Council meeting; Brussels, 15 February 2011 (5 pages)
Conclusions du Conseil sur Semestre européen: Orientations macroéconomiques et budgétaires;
3067ème session du Conseil AFFAIRES ECONOMIQUES et FINANCIERES; Bruxelles, 15 février 2011
Combating tax fraud
There are English, French and Hungarian versions of the conclusions concerning efforts against tax fraud (document 6554/11). Here is the English text:
Combating tax fraud: Adoption of directive on strengthened mutual assistance and the exchange of information (document 6554/11; 2 pages)
EU budget 2012
The member states agreed on guidelines for the negotiations regarding the budget of the European Union for 2012 (document 5895/11). There seem to be 22 language versions available, described as drafts. Here are the budget guidelines in English:
Draft Council conclusions on the budget guidelines for 2012 (9 pages)
***
It is intellectually stimulating to have the common euro currency, but basically 17 (or 27) different national economic policies.
Ralf Grahn
P.S. Yesterday foreign minister Carl Bildt presented the annual foreign policy statement of the Swedish government in the parliamentary debate: Utrikesdeklarationen 2011 in Swedish and the Government Foreign Policy Statement 2011 in English.
P.S. 2: Political and macroeconomic guidelines emanating (or not) from the European Council at the top are indispensable to know, but details of internal market reform (Single Market Act) and the Europe 2020 strategy (EU2020 flagship initiatives) are going to be among the recurring themes as well. On my Euroblogs I want to discuss legal and political issues relevant to European enterprises, jobs, employers and employees, consumers and citizens, especially in cross-border situations.
Hopefully my blogs succeed in educating and guiding readers towards relevant sources. For me the blogs offer disciplined study as basic training and continuous updating for my teaching and legal counseling activities.
My blogs are: upstream Grahnlaw (in English), Grahnblawg (in Swedish) and Eurooppaoikeus (in Finnish), as well as usually downstream the trilingual Grahnlaw Suomi Finland (later, with more sediment).
If you are interested in the European economy, business, politics or law, we can get acquainted through Twitter @RalfGrahn or Facebook.
Monday, 10 May 2010
EU Reflection Group delivered report: Project Europe 2030
We start by recalling the conclusions of the European Council 14 December 2007, one day after the Treaty of Lisbon was signed (document 16616/1/07). Reflections on “institutional” matters, current policies and the next long term budget were expressly prohibited:
Project Europe 2030
Before the appointment, it was generally referred to as the Group of Wise Persons. In the report the Group added a few words to its name, in order to become discernible from past and future groups, so it became the Reflection Group on the Future of the EU 2030.
On 8 May 2010 the Felipe González, Chairman of Reflection Group, handed over the report to the President of the European Council Herman Van Rompuy:
Project Europe 2030 (for the English version; 46 pages)
The report is also available in Dutch, French, German and Spanish.
Creation of jobs and growth
The main message of the Project Europe 2030 report is:
The beginning of the report is written in the form of a letter from the Reflection Group to the European Council (pages 3 to 6).
The Reflection Group calls for more decisive political leadership from the intergovernmental bodies of the EU: the European Council and the Eurogroup (in coordination with the Commission and the European Parliament; page 6).
The strategic challenges mentioned in this summary are generally well known, but where the European Union has mainly tinkered on the edges, the need for concrete and decisive action is pronounced with gravity.
Among the challenges requiring solutions are:
• Avoiding protectionist temptations
• Medium and long-term reforms in addition to measures to overcome the current crisis
• Strengthening economic governance by correcting losses in competitiveness, reflected in balance of payments and current account deficits
• Reforming the functioning and supervision of financial institutions
• Achieving a highly competitive and sustainable social market economy in order to maintain social cohesion and fight against climate change
• Catching up in the race towards a knowledge economy
• Implementing a common energy policy
• Leading the fight against climate change
• Tackling the demographic challenge
• Strengthening the Single Market including services, the digital society and other new sectors driving growth and job creation
• Reforming the labour market
• Modernising corporate governance practices
The letter is rounded off with a few remarks on how the EU should become a citizens’ project.
At a first glance, the recommendations read like a damning report card on the lost decade of the Lisbon Strategy.
The European Communities and the EU could establish a museum dedicated to the reform reports which were politely received by the leaders and silently shunted aside to gather dust.
Are the prospects any better now?
Possibly. Since the beginning of this year there is one EU citizen with a vested interest to make the European Council deliver, its President Herman Van Rompuy.
Can he set the wheels in motion?
A haiku for your thoughts.
Ralf Grahn
Reflection Group horizon 2020-2030
8. In order to help the Union anticipate and meet challenges more effectively in the longer term (horizon 2020 - 2030), the European Council establishes an independent Reflection Group. Taking as its starting-point the challenges set out in the Berlin Declaration of 25 March 2007, the Group is invited to identify the key issues and developments which the Union is likely to face and to analyse how these might be addressed. This includes, inter alia: strengthening and modernising the European model of economic success and social responsibility, enhancing the competitiveness of the EU, the rule of law, sustainable development as a fundamental objective of the European Union, global stability, migration, energy and climate protection, and the fight against global insecurity, international crime and terrorism. Particular attention should be given to ways of better reaching out to citizens and addressing their expectations and needs.
9. The Group shall conduct its reflections within the framework set out in the Lisbon Treaty. It shall therefore not discuss institutional matters. Nor, in view of its long-term nature, should its analysis constitute a review of current policies or address the Union's next financial framework.
10. In its work, the Reflection Group will need to take into account likely developments within and outside Europe and examine in particular how the stability and prosperity of both the Union and of the wider region might best be served in the longer term.
11. The Group will be chaired by Mr Felipe Gonzalez Marquez, assisted by two Vice-Chairs, Ms Vaira Vike-Freiberga and Mr Jorma Ollila, and will include no more than 9 members selected from across the Union on the basis of merit. The Chairman and the Vice-Chairs are invited to submit a list of names to be considered by the European Council during the French Presidency.
12. The Group will consult as it deems appropriate and be responsible for the organisation of its own work.
13. The Group shall present its report to the European Council meeting of June 2010.
Project Europe 2030
Before the appointment, it was generally referred to as the Group of Wise Persons. In the report the Group added a few words to its name, in order to become discernible from past and future groups, so it became the Reflection Group on the Future of the EU 2030.
On 8 May 2010 the Felipe González, Chairman of Reflection Group, handed over the report to the President of the European Council Herman Van Rompuy:
Project Europe 2030 (for the English version; 46 pages)
The report is also available in Dutch, French, German and Spanish.
Creation of jobs and growth
The main message of the Project Europe 2030 report is:
Our top priority must remain creating jobs and growth.
The beginning of the report is written in the form of a letter from the Reflection Group to the European Council (pages 3 to 6).
The Reflection Group calls for more decisive political leadership from the intergovernmental bodies of the EU: the European Council and the Eurogroup (in coordination with the Commission and the European Parliament; page 6).
The strategic challenges mentioned in this summary are generally well known, but where the European Union has mainly tinkered on the edges, the need for concrete and decisive action is pronounced with gravity.
Among the challenges requiring solutions are:
• Avoiding protectionist temptations
• Medium and long-term reforms in addition to measures to overcome the current crisis
• Strengthening economic governance by correcting losses in competitiveness, reflected in balance of payments and current account deficits
• Reforming the functioning and supervision of financial institutions
• Achieving a highly competitive and sustainable social market economy in order to maintain social cohesion and fight against climate change
• Catching up in the race towards a knowledge economy
• Implementing a common energy policy
• Leading the fight against climate change
• Tackling the demographic challenge
• Strengthening the Single Market including services, the digital society and other new sectors driving growth and job creation
• Reforming the labour market
• Modernising corporate governance practices
The letter is rounded off with a few remarks on how the EU should become a citizens’ project.
At a first glance, the recommendations read like a damning report card on the lost decade of the Lisbon Strategy.
The European Communities and the EU could establish a museum dedicated to the reform reports which were politely received by the leaders and silently shunted aside to gather dust.
Are the prospects any better now?
Possibly. Since the beginning of this year there is one EU citizen with a vested interest to make the European Council deliver, its President Herman Van Rompuy.
Can he set the wheels in motion?
A haiku for your thoughts.
Ralf Grahn
Friday, 14 November 2008
Eurozone: International policies and external representation
It looks like a natural consequence of economic and monetary union that the European Union (European Community) would have unified policies and representation in its dealings with the outside world.
The existing treaty expresses a desire towards more unified external representation and common EU policies in international financial organisations and conferences, but the wording is vague and the existence of both eurozone members and non-euro members complicates issues.
The intergovernmental conferences drafting the treaties have clearly recognised the need for clarification, and they have wanted to develop the euro area’s (eurozone’s) means to reach common positions and representation internationally.
The International Monetary Fund (IMF) is a starting-point for these discussions, but they concern other international financial institutions and forums (such as G7/8) as well.
***
Current treaty
The fourth paragraph of Article 111 (ex Article 109) of the current Treaty establishing the European Community (TEC) concerns the position and the representation of the European Community at international level (in the latest codified version of the treaties, Official Journal 29.12.2006 C 321 E/90):
Article 111(4) TEC
-----
4. Subject to paragraph 1, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the ECB, shall decide on the position of the Community at international level as regards issues of particular relevance to economic and monetary union and on its representation, in compliance with the allocation of powers laid down in Articles 99 and 105.
-----
***
Scope
The scope of Article 111(4) TEC is interesting. Formal exchange-rate regimes are treated separately (paragraph 1). Economic policy is mainly a matter within member state competence. The European Central Bank is meant to have autonomy in international monetary matters.
***
Draft Constitution
The European Convention proposed a new section with the aim to strengthen the autonomy of the euro area, Section 3a Provisions specific to Member States which are part of the euro area. Common euro area policies and eurozone representation internationally were given a sharper focus in Article III-90 of the draft Constitution (OJ 18.7.2003 C 169/44─45):
Article III-90 Draft Constitution
1. In order to secure the euro's place in the international monetary system, the Council of Ministers, on a proposal from the Commission and after consulting the European Central Bank, shall adopt a European decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences.
2. For the measures referred to in paragraph 1, only members of the Council of Ministers representing Member States which are part of the euro area shall vote. A qualified majority shall be defined as the majority of the votes of the representatives of the Member States which are part of the euro area, representing at least three fifths of their population. Unanimity of those members of the Council of Ministers shall be required for an act requiring unanimity.
3. The Council of Ministers, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The procedural provisions of paragraphs 1 and 2 shall apply.
***
Finland
The Finnish government reported on the results of the European Convention in Valtioneuvoston selonteko Eduskunnalle konventin tuloksista ja valmistautumisesta hallitusten väliseen konferenssiin (VNS 2/2003 vp). The government remarked that the Finnish Convention delegates had supported the proposals to prepare common EMU positions and to decide on unified representation in international financial institutions and conferences (page 66):
”Euroalueen ulkoista edustamista vahvistetaan perustuslaillisessa sopimuksessa siten, että neuvosto voi komission aloitteesta ja EKP:ia kuultuaan hyväksyä päätöksiä joilla vahvistetaan yhteinen kanta EMU:n kannalta keskeisissä kysymyksissä kansainvälisiä rahoituslaitoksia tai konferensseja silmälläpitäen. Samoin neuvosto voi hyväksyä toimia joilla varmistetaan euroalueen yhtenäinen edustautuminen kansainvälisissä rahoituslaitoksissa ja konferensseissa. Näissä tapauksissa päätöksentekoon osallistuvat vain euroalueeseen osallistuvat jäsenvaltiot. Suomen edustajat konventissa tukivat näitä ehdotuksia.”
***
Sweden
Ahead of the intergovernmental conference, the Swedish government presented its views in Regeringens skrivelse 2003/04:13 Europeiska konventet om EU:s framtid (2 October 2003). Non-euro Sweden was fairly supportive of effective decision-making in the eurozone and international representation for the euro area in international financial institutions (page 50):
”Det kan finnas skäl för euroländerna att på olika sätt säkerställa ett väl fungerande beslutsfattande i euroområdet. Det är dock viktigt att samordningsprocesserna behåller sin gemensamma karaktär. Det är också förståeligt att euroländerna vill uppnå en effektiv representation av euroområdet i internationella finansiella institutioner.”
***
Constitutional Treaty
The intergovernmental conference (IGC 2004) re-ordered, but essentially maintained the Convention proposal in Article III-196 of the Treaty establishing a Constitution for Europe (OJ 16.12.2004 C 310/86):
Article III-196 Constitution
1. In order to secure the euro's place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a European decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
2. The Council, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
3. For the measures referred to in paragraphs 1 and 2, only members of the Council representing Member States whose currency is the euro shall take part in the vote.
A qualified majority shall be defined as at least 55 % of these members of the Council, representing Member States comprising at least 65 % of the population of the participating Member States.
A blocking minority must include at least the minimum number of these Council members representing more than 35 % of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.
***
Sweden
The government of Sweden, still outside the eurozone, described the common positions and the euro area representation in the draft ratification bill, Lagrådsremiss Fördraget om upprättande av en konstitution för Europa (2 June 2005), page 172. The Swedish government saw that the Constitutional Treaty strengthened the external action of the euro countries:
”Euroländernas externa agerande
När frågor av särskilt intresse för valutaunionen diskuteras vid internationella finansiella institutioner och konferenser skall enligt dagens bestämmelser beslut om vilken ståndpunkt gemenskapen skall framföra fattas med kvalificerad majoritet av rådet. Beslutet fattas på förslag av kommissionen efter att ha hört Europeiska centralbanken. Nuvarande fördrag specificerar inte på vilket sätt den gemensamma ståndpunkten skall förmedlas, dvs. hur euroländerna skall vara representerade. I det konstitutionella fördraget stärks euroländernas s.k. externa agerande. Detta sker dels genom att endast euroländer får delta i beslutsfattandet om gemensamma ståndpunkter i frågor av särskild betydelse för valutaunionen och om hur dessa ståndpunkter skall framföras, dels genom stärkt stimulans för enad representation vid internationella finansiella institutioner och konferenser (artikel III-196).”
***
Original Lisbon Treaty
In Article 2, point 100, of the original Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) inserted a new Chapter 3a Provisions specific to member states whose currency is the euro (OJ 17.12.2007 C 306/75─76):
100) The following new Chapter 3a and new Articles 115 A, 115 B and 115 C shall be inserted:
‘CHAPTER 3a
PROVISIONS SPECIFIC TO MEMBER STATES WHOSE CURRENCY IS THE EURO
-----
Article 115 C TFEU (ToL)
1. In order to secure the euro's place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
2. The Council, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
3. For the measures referred to in paragraphs 1 and 2, only members of the Council representing Member States whose currency is the euro shall take part in the vote.
A qualified majority of the said members shall be defined in accordance with Article 205(3)(a).’.
***
Renumbering
The TFEU table of equivalences confirms that the new Article 115c TFEU (ToL) in the original Treaty of Lisbon was to be renumbered Article 138 TFEU in the consolidated version, under the title ‘Economic and monetary policy’, renumbered Title VIII, and in the renumbered Chapter 4 ‘Provisions specific to Member States whose currency is the euro’ (OJ 17.12.2007 C 306/214).
(In the consolidated version of the Lisbon Treaty, OJ 9.5.2008 C 115, the Tables of equivalences start on page 361, but the ToL numbers have been omitted.)
***
Consolidated Lisbon Treaty: TFEU
Article 138 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/107:
Part Three Union policies and internal actions
Title VIII Economic and monetary policy
Chapter 4 Provisions specific to Member States whose currency is the euro
Article 138 TFEU
(ex Article 111(4), TEC)
1. In order to secure the euro's place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
2. The Council, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
3. For the measures referred to in paragraphs 1 and 2, only members of the Council representing Member States whose currency is the euro shall take part in the vote.
A qualified majority of the said members shall be defined in accordance with Article 238(3)(a).
***
Sweden
The Lisbon Treaty ratification bill of the Swedish government, Regeringens proposition 2007/08:168 Lissabonfördraget (3 July 2008), on page 183, mentions the external representation for the euro countries in the same terms as concerning the Constitutional Treaty:
”Euroländernas externa agerande
När frågor av särskilt intresse för valutaunionen diskuteras vid internationella finansiella institutioner och konferenser ska enligt dagens bestämmelser beslut om vilken ståndpunkt gemenskapen ska framföra fattas med kvalificerad majoritet av rådet (artikel 111.4 i EG-fördraget). Beslutet fattas på förslag av kommissionen efter att ha hört Europeiska centralbanken. Nu gällande EG-fördrag specificerar inte på vilket sätt den gemensamma ståndpunkten ska förmedlas, dvs. hur euroländerna ska vara representerade. Genom Lissabonfördraget stärks euroländernas s.k. externa agerande. Detta sker dels genom att endast euroländer får delta i beslutsfattandet om gemensamma ståndpunkter i frågor av särskilt intresse för den ekonomiska och monetära unionen och om hur dessa ståndpunkter ska framföras, dels genom stärkt stimulans för enad representation vid internationella finansinstitutioner och finanskonferenser (artikel 115c i EUF-fördraget).”
***
Priollaud and Siritzky
In ‘Le traité de Lisbonne ; Commentaire, article par article, des nouveaux traités européens (TUE et TFUE)’ (La Documentation Française, 2008), François-Xavier Priollaud and David Siritzky present the Lisbon Treaty provisions of Chapter 4 (Dispositions propres aux États membres dont la monnaie est l’euro) on page 258 to 260.
There is an informative section under the headline « Vers une representation unifiée de la zone euro dans les enceintes internationales ».
***
United Kingdom FCO
‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon (Cm 7311, 21 January 2008) offers the following comment on Article 138 TFEU (on page 13):
“Draws on Article 111(4). Develops arrangements for international representation.”
***
UK House of Commons Library
The UK House of Commons Library presented the amending treaty in ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Communities’ (Research paper 07/86, 6 December 2007), on page 62 and 63. Note that the numbering of the Articles changed in the signed treaty (original ToL):
Articles 114, 115 and 115(a) (Constitution Articles III-194, 195 and 196), “Provisions specific to Member States whose currency is the Euro”, are new.
Article 114 allows for measures on the coordination and surveillance of budgetary discipline and economic guidelines to be set specifically for the euro area. Article 115A allows for an informal ‘euro group’ to be set up, consisting of Ministers whose currency is the euro. In practice the ‘euro group’ already exists and meets informally prior to normal ECOFIN meetings. Article 115C allows the Council to adopt decisions establishing common positions relevant to EMU within international financial institutions and conferences as well as measures to ensure unified representation within international financial institutions and conferences. These measures will only cover the euro area and will be decided by Member States of the euro area. The Deutsche Bank thought the recognition of the group as a kind of Euro-ECOFIN Council would “moderately strengthen the role of the Eurogroup and improve policy coordination within the euro area.”
***
Widipedia
With regard to the euro area generally, the Wikipedia article Eurozone offers an introduction to the single currency and a section on the Eurogroup, including a few words on external representation (last update 7 November 2008):
http://en.wikipedia.org/wiki/Eurozone
***
Article 138 TFEU clearly adopts Article III-196 of the Constitutional Treaty, except for the technical solution that the Lisbon Treaty shifts the definition of a qualified majority to Article 238(3)(a) TFEU.
When it is clear that the euro area has a unified external representation and that the eurozone members decide on the common positions, it should be harder for the Eurogroup members themselves, for other EU members or for outside states and international institutions to resist unified representation and action by the euro area.
Ralf Grahn
The existing treaty expresses a desire towards more unified external representation and common EU policies in international financial organisations and conferences, but the wording is vague and the existence of both eurozone members and non-euro members complicates issues.
The intergovernmental conferences drafting the treaties have clearly recognised the need for clarification, and they have wanted to develop the euro area’s (eurozone’s) means to reach common positions and representation internationally.
The International Monetary Fund (IMF) is a starting-point for these discussions, but they concern other international financial institutions and forums (such as G7/8) as well.
***
Current treaty
The fourth paragraph of Article 111 (ex Article 109) of the current Treaty establishing the European Community (TEC) concerns the position and the representation of the European Community at international level (in the latest codified version of the treaties, Official Journal 29.12.2006 C 321 E/90):
Article 111(4) TEC
-----
4. Subject to paragraph 1, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the ECB, shall decide on the position of the Community at international level as regards issues of particular relevance to economic and monetary union and on its representation, in compliance with the allocation of powers laid down in Articles 99 and 105.
-----
***
Scope
The scope of Article 111(4) TEC is interesting. Formal exchange-rate regimes are treated separately (paragraph 1). Economic policy is mainly a matter within member state competence. The European Central Bank is meant to have autonomy in international monetary matters.
***
Draft Constitution
The European Convention proposed a new section with the aim to strengthen the autonomy of the euro area, Section 3a Provisions specific to Member States which are part of the euro area. Common euro area policies and eurozone representation internationally were given a sharper focus in Article III-90 of the draft Constitution (OJ 18.7.2003 C 169/44─45):
Article III-90 Draft Constitution
1. In order to secure the euro's place in the international monetary system, the Council of Ministers, on a proposal from the Commission and after consulting the European Central Bank, shall adopt a European decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences.
2. For the measures referred to in paragraph 1, only members of the Council of Ministers representing Member States which are part of the euro area shall vote. A qualified majority shall be defined as the majority of the votes of the representatives of the Member States which are part of the euro area, representing at least three fifths of their population. Unanimity of those members of the Council of Ministers shall be required for an act requiring unanimity.
3. The Council of Ministers, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The procedural provisions of paragraphs 1 and 2 shall apply.
***
Finland
The Finnish government reported on the results of the European Convention in Valtioneuvoston selonteko Eduskunnalle konventin tuloksista ja valmistautumisesta hallitusten väliseen konferenssiin (VNS 2/2003 vp). The government remarked that the Finnish Convention delegates had supported the proposals to prepare common EMU positions and to decide on unified representation in international financial institutions and conferences (page 66):
”Euroalueen ulkoista edustamista vahvistetaan perustuslaillisessa sopimuksessa siten, että neuvosto voi komission aloitteesta ja EKP:ia kuultuaan hyväksyä päätöksiä joilla vahvistetaan yhteinen kanta EMU:n kannalta keskeisissä kysymyksissä kansainvälisiä rahoituslaitoksia tai konferensseja silmälläpitäen. Samoin neuvosto voi hyväksyä toimia joilla varmistetaan euroalueen yhtenäinen edustautuminen kansainvälisissä rahoituslaitoksissa ja konferensseissa. Näissä tapauksissa päätöksentekoon osallistuvat vain euroalueeseen osallistuvat jäsenvaltiot. Suomen edustajat konventissa tukivat näitä ehdotuksia.”
***
Sweden
Ahead of the intergovernmental conference, the Swedish government presented its views in Regeringens skrivelse 2003/04:13 Europeiska konventet om EU:s framtid (2 October 2003). Non-euro Sweden was fairly supportive of effective decision-making in the eurozone and international representation for the euro area in international financial institutions (page 50):
”Det kan finnas skäl för euroländerna att på olika sätt säkerställa ett väl fungerande beslutsfattande i euroområdet. Det är dock viktigt att samordningsprocesserna behåller sin gemensamma karaktär. Det är också förståeligt att euroländerna vill uppnå en effektiv representation av euroområdet i internationella finansiella institutioner.”
***
Constitutional Treaty
The intergovernmental conference (IGC 2004) re-ordered, but essentially maintained the Convention proposal in Article III-196 of the Treaty establishing a Constitution for Europe (OJ 16.12.2004 C 310/86):
Article III-196 Constitution
1. In order to secure the euro's place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a European decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
2. The Council, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
3. For the measures referred to in paragraphs 1 and 2, only members of the Council representing Member States whose currency is the euro shall take part in the vote.
A qualified majority shall be defined as at least 55 % of these members of the Council, representing Member States comprising at least 65 % of the population of the participating Member States.
A blocking minority must include at least the minimum number of these Council members representing more than 35 % of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.
***
Sweden
The government of Sweden, still outside the eurozone, described the common positions and the euro area representation in the draft ratification bill, Lagrådsremiss Fördraget om upprättande av en konstitution för Europa (2 June 2005), page 172. The Swedish government saw that the Constitutional Treaty strengthened the external action of the euro countries:
”Euroländernas externa agerande
När frågor av särskilt intresse för valutaunionen diskuteras vid internationella finansiella institutioner och konferenser skall enligt dagens bestämmelser beslut om vilken ståndpunkt gemenskapen skall framföra fattas med kvalificerad majoritet av rådet. Beslutet fattas på förslag av kommissionen efter att ha hört Europeiska centralbanken. Nuvarande fördrag specificerar inte på vilket sätt den gemensamma ståndpunkten skall förmedlas, dvs. hur euroländerna skall vara representerade. I det konstitutionella fördraget stärks euroländernas s.k. externa agerande. Detta sker dels genom att endast euroländer får delta i beslutsfattandet om gemensamma ståndpunkter i frågor av särskild betydelse för valutaunionen och om hur dessa ståndpunkter skall framföras, dels genom stärkt stimulans för enad representation vid internationella finansiella institutioner och konferenser (artikel III-196).”
***
Original Lisbon Treaty
In Article 2, point 100, of the original Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) inserted a new Chapter 3a Provisions specific to member states whose currency is the euro (OJ 17.12.2007 C 306/75─76):
100) The following new Chapter 3a and new Articles 115 A, 115 B and 115 C shall be inserted:
‘CHAPTER 3a
PROVISIONS SPECIFIC TO MEMBER STATES WHOSE CURRENCY IS THE EURO
-----
Article 115 C TFEU (ToL)
1. In order to secure the euro's place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
2. The Council, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
3. For the measures referred to in paragraphs 1 and 2, only members of the Council representing Member States whose currency is the euro shall take part in the vote.
A qualified majority of the said members shall be defined in accordance with Article 205(3)(a).’.
***
Renumbering
The TFEU table of equivalences confirms that the new Article 115c TFEU (ToL) in the original Treaty of Lisbon was to be renumbered Article 138 TFEU in the consolidated version, under the title ‘Economic and monetary policy’, renumbered Title VIII, and in the renumbered Chapter 4 ‘Provisions specific to Member States whose currency is the euro’ (OJ 17.12.2007 C 306/214).
(In the consolidated version of the Lisbon Treaty, OJ 9.5.2008 C 115, the Tables of equivalences start on page 361, but the ToL numbers have been omitted.)
***
Consolidated Lisbon Treaty: TFEU
Article 138 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/107:
Part Three Union policies and internal actions
Title VIII Economic and monetary policy
Chapter 4 Provisions specific to Member States whose currency is the euro
Article 138 TFEU
(ex Article 111(4), TEC)
1. In order to secure the euro's place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
2. The Council, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
3. For the measures referred to in paragraphs 1 and 2, only members of the Council representing Member States whose currency is the euro shall take part in the vote.
A qualified majority of the said members shall be defined in accordance with Article 238(3)(a).
***
Sweden
The Lisbon Treaty ratification bill of the Swedish government, Regeringens proposition 2007/08:168 Lissabonfördraget (3 July 2008), on page 183, mentions the external representation for the euro countries in the same terms as concerning the Constitutional Treaty:
”Euroländernas externa agerande
När frågor av särskilt intresse för valutaunionen diskuteras vid internationella finansiella institutioner och konferenser ska enligt dagens bestämmelser beslut om vilken ståndpunkt gemenskapen ska framföra fattas med kvalificerad majoritet av rådet (artikel 111.4 i EG-fördraget). Beslutet fattas på förslag av kommissionen efter att ha hört Europeiska centralbanken. Nu gällande EG-fördrag specificerar inte på vilket sätt den gemensamma ståndpunkten ska förmedlas, dvs. hur euroländerna ska vara representerade. Genom Lissabonfördraget stärks euroländernas s.k. externa agerande. Detta sker dels genom att endast euroländer får delta i beslutsfattandet om gemensamma ståndpunkter i frågor av särskilt intresse för den ekonomiska och monetära unionen och om hur dessa ståndpunkter ska framföras, dels genom stärkt stimulans för enad representation vid internationella finansinstitutioner och finanskonferenser (artikel 115c i EUF-fördraget).”
***
Priollaud and Siritzky
In ‘Le traité de Lisbonne ; Commentaire, article par article, des nouveaux traités européens (TUE et TFUE)’ (La Documentation Française, 2008), François-Xavier Priollaud and David Siritzky present the Lisbon Treaty provisions of Chapter 4 (Dispositions propres aux États membres dont la monnaie est l’euro) on page 258 to 260.
There is an informative section under the headline « Vers une representation unifiée de la zone euro dans les enceintes internationales ».
***
United Kingdom FCO
‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon (Cm 7311, 21 January 2008) offers the following comment on Article 138 TFEU (on page 13):
“Draws on Article 111(4). Develops arrangements for international representation.”
***
UK House of Commons Library
The UK House of Commons Library presented the amending treaty in ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Communities’ (Research paper 07/86, 6 December 2007), on page 62 and 63. Note that the numbering of the Articles changed in the signed treaty (original ToL):
Articles 114, 115 and 115(a) (Constitution Articles III-194, 195 and 196), “Provisions specific to Member States whose currency is the Euro”, are new.
Article 114 allows for measures on the coordination and surveillance of budgetary discipline and economic guidelines to be set specifically for the euro area. Article 115A allows for an informal ‘euro group’ to be set up, consisting of Ministers whose currency is the euro. In practice the ‘euro group’ already exists and meets informally prior to normal ECOFIN meetings. Article 115C allows the Council to adopt decisions establishing common positions relevant to EMU within international financial institutions and conferences as well as measures to ensure unified representation within international financial institutions and conferences. These measures will only cover the euro area and will be decided by Member States of the euro area. The Deutsche Bank thought the recognition of the group as a kind of Euro-ECOFIN Council would “moderately strengthen the role of the Eurogroup and improve policy coordination within the euro area.”
***
Widipedia
With regard to the euro area generally, the Wikipedia article Eurozone offers an introduction to the single currency and a section on the Eurogroup, including a few words on external representation (last update 7 November 2008):
http://en.wikipedia.org/wiki/Eurozone
***
Article 138 TFEU clearly adopts Article III-196 of the Constitutional Treaty, except for the technical solution that the Lisbon Treaty shifts the definition of a qualified majority to Article 238(3)(a) TFEU.
When it is clear that the euro area has a unified external representation and that the eurozone members decide on the common positions, it should be harder for the Eurogroup members themselves, for other EU members or for outside states and international institutions to resist unified representation and action by the euro area.
Ralf Grahn
Thursday, 13 November 2008
Eurogroup in Lisbon Treaty
Under the chairmanship of Jean-Claude Juncker, the ministers of finance of the 15 eurozone EU member states, with a population of 320 million, usually convene before each Ecofin Council meeting.
From 1 January 2009 Ján Počiatek, the finance minister of Slovakia, is going to join his colleagues from Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain in the informal Eurogroup.
The president of the European Central Bank (ECB) and the Commission member responsible for economic and financial affairs are invited to the Eurogroup meetings.
The Eurogroup is not a decision-making body. The Council (Ecofin) takes the decisions, but in certain matters only the euro area members participate in the vote.
***
Current treaty
The current Treaty establishing the European Community (TEC) lacks provisions on the Eurogroup, although some Council decisions are made by euro area members.
We turn to the European Convention and the Constitutional Treaty.
***
Draft Constitution
The European Convention proposed a new section with the aim to strengthen the autonomy of the euro area, Section 3a Provisions specific to Member States which are part of the euro area, with an Article III-89 concerning the Eurogroup (OJ 18.7.2003 C 169/44):
Article III-89 Draft Constitution
Arrangements for meetings between ministers of those Member States which are part of the euro area shall be laid down in the Protocol on the Euro Group.
***
Constitutional Treaty
The intergovernmental conference (IGC 2004) adopted the Convention proposal with minor rewording in Article III-195 of the Treaty establishing a Constitution for Europe (OJ 16.12.2004 C 310/85):
Article III-195 Constitution
Arrangements for meetings between ministers of those Member States whose currency is the euro are laid down by the Protocol on the Euro Group.
***
Sweden
The government of non-euro Sweden described the Eurogroup in the draft ratification bill, Lagrådsremiss Fördraget om upprättande av en konstitution för Europa (2 juni 2005), page 172. The Swedish government noted the existing informal cooperation within the monetary union. The Eurogroup is strengthened by being mentioned in the new treaty and by an elected president for two and a half years. The new Protocol on the Euro Group is mentioned by the Swedish government:
”Redan i dag finns ett informellt samarbete mellan finansministrarna från medlemsländerna i valutaunionen, den s.k. eurogruppen. I det konstitutionella fördraget ges den s.k. eurogruppen en fastare ställning genom att den omnämns i fördraget (artikel III-195) och får en vald ordförande på två och ett halvt år. Till det konstitutionella fördraget är fogat ett nytt protokoll om eurogruppen.”
***
Original Lisbon Treaty
In Article 2, point 100, of the original Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) inserted a new Chapter 3a Provisions specific to member states whose currency is the euro (OJ 17.12.2007 C 306/75─76):
100) The following new Chapter 3a and new Articles 115 A, 115 B and 115 C shall be inserted:
‘CHAPTER 3a
PROVISIONS SPECIFIC TO MEMBER STATES WHOSE CURRENCY IS THE EURO
-----
Article 115 B TFEU(ToL)
Arrangements for meetings between ministers of those Member States whose currency is the euro are laid down by the Protocol on the Euro Group.
***
Renumbering
The TFEU table of equivalences confirms that the new Article 115b TFEU (ToL) in the original Treaty of Lisbon was to be renumbered Article 137 TFEU in the consolidated version, under the title ‘Economic and monetary policy’, renumbered Title VIII, and in the renumbered Chapter 4 ‘Provisions specific to Member States whose currency is the euro’ (OJ 17.12.2007 C 306/214).
(In the consolidated version of the Lisbon Treaty, OJ 9.5.2008 C 115, the Tables of equivalences start on page 361, but the ToL numbers have been omitted.)
***
Consolidated Lisbon Treaty: TFEU
Article 137 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/106:
Part Three Union policies and internal actions
Title VIII Economic and monetary policy
Chapter 4
Provisions specific to Member States whose currency is the euro
Article 137 TFEU
Arrangements for meetings between ministers of those Member States whose currency is the euro are laid down by the Protocol on the Euro Group.
***
Sweden
The Lisbon Treaty ratification bill of the Swedish government, Regeringens proposition 2007/08:168 Lissabonfördraget (3 July 2008), on page 183, mentions the Eurogroup in terms similar to the ones used concerning the Constitutional Treaty:
”Redan idag finns ett informellt samarbete mellan finansministrarna från medlemsstaterna i valutaunionen, den s.k. eurogruppen. Genom Lissabonfördraget ges den s.k. eurogruppen en fastare ställning genom att den omnämns i fördraget (artikel 115b i EUF-fördraget). Ett nytt protokoll om eurogruppen fogas till EU-fördraget och EUF-fördraget där det bl.a. framgår att ministrarna från de medlemsstater som har euron som valuta ska välja en ordförande för två och ett halvt år. Beslut ska fattas med en majoritet av dessa medlemsstater.”
***
Priollaud and Siritzky
In ‘Le traité de Lisbonne ; Commentaire, article par article, des nouveaux traités européens (TUE et TFUE)’ (La Documentation Française, 2008), François-Xavier Priollaud and David Siritzky present the Lisbon Treaty provisions of Chapter 4 (Dispositions propres aux États membres dont la monnaie est l’euro) on page 258 to 260.
The authors remark that the strengthened autonomy for the eurozone is a major step forward, but they remind that the Council (Ecofin) remains the decision-making body (not the Euro Group).
***
United Kingdom FCO
‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon (Cm 7311, 21 January 2008) offers the following comment on Article 137 TFEU (on page 13):
“New.Meetings of Euro Group ministers.”
***
UK House of Commons Library
The UK House of Commons Library presented the amending treaty in ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Communities’ (Research paper 07/86, 6 December 2007), on page 62 and 63. Note that the numbering of the Articles changed in the signed treaty (original ToL):
Articles 114, 115 and 115(a) (Constitution Articles III-194, 195 and 196), “Provisions specific to Member States whose currency is the Euro”, are new.
Article 114 allows for measures on the coordination and surveillance of budgetary discipline and economic guidelines to be set specifically for the euro area. Article 115A allows for an informal ‘euro group’ to be set up, consisting of Ministers whose currency is the euro. In practice the ‘euro group’ already exists and meets informally prior to normal ECOFIN meetings. Article 115C allows the Council to adopt decisions establishing common positions relevant to EMU within international financial institutions and conferences as well as measures to ensure unified representation within international financial institutions and conferences. These measures will only cover the euro area and will be decided by Member States of the euro area. The Deutsche Bank thought the recognition of the group as a kind of Euro-ECOFIN Council would “moderately strengthen the role of the Eurogroup and improve policy coordination within the euro area.”
***
Widipedia
With regard to the euro area generally, the Wikipedia article Eurozone offers an introduction to the single currency and a section on the Eurogroup, as well as a number of links (last update 7 November 2008):
http://en.wikipedia.org/wiki/Eurozone
***
Protocol on the Euro Group
The Eurogroup already exists and functions, but formal recognition at treaty level was proposed by the European Convention and agreed by the intergovernmental conferences leading to the Constitutional Treaty (2004) and the Treaty of Lisbon (2007).
The Article in question is a referral to a Protocol. Consequently, the “beef” ─ if there is any ─ is to be found in that Protocol.
The Eurogroup was much discussed during the European Convention. One indication of this interest is that the draft Constitution actually contains a Protocol on the Euro Group, even if the Convention generally left a fairly rudimentary list of protocols (OJ 18.7.2003 C 169/97):
PROTOCOL ON THE EURO GROUP
THE HIGH CONTRACTING PARTIES,
DESIRING to promote conditions for stronger economic growth in Europe and, to that end, to develop ever-closer coordination of economic policies within the euro area,
CONSCIOUS of the need to lay down special provisions for enhanced dialogue between the Member States which have adopted the euro, pending the accession of all Member States of the Union to the euro area,
HAVE AGREED upon the following provisions, which are annexed to the Constitution:
Article 1
The Ministers of the Member States which have adopted the euro shall meet informally. Such meetings shall take place, when necessary, to discuss questions related to the specific responsibilities they share with regard to the single currency. The Commission and the European Central Bank shall be invited to take part in such meetings, which shall be prepared by the representatives of the Ministers with responsibility for finance of the Member States which have adopted the euro.
Article 2
The Ministers of the Member States which have adopted the euro shall elect a president for two and a half years, by a majority of those Member States.
***
If we jump from the draft Constitution to the consolidated version of the TFEU, we notice that Protocol (No 14) on the Euro Group differs mainly in nuances. According to the Lisbon Treaty, following in the footsteps of the Constitution, the Commission shall take part and shall participate in the preparation of meetings, whereas the Convention was content to invite the Commission along with the European Central Bank.
But the main characteristics are still there. Informal meetings are recognised formally. The Eurogroup is still intended to elect a president for two and a half years (OJ 9.5.2008 C 115/283):
PROTOCOL (No 14)
ON THE EURO GROUP
THE HIGH CONTRACTING PARTIES,
DESIRING to promote conditions for stronger economic growth in the European Union and, to that end, to develop ever-closer coordination of economic policies within the euro area,
CONSCIOUS of the need to lay down special provisions for enhanced dialogue between the Member States whose currency is the euro, pending the euro becoming the currency of all Member States of the Union,
HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union:
Article 1
The Ministers of the Member States whose currency is the euro shall meet informally. Such meetings shall take place, when necessary, to discuss questions related to the specific responsibilities they share with regard to the single currency. The Commission shall take part in the meetings. The European Central Bank shall be invited to take part in such meetings, which shall be prepared by the representatives of the Ministers with responsibility for finance of the Member States whose currency is the euro and of the Commission.
Article 2
The Ministers of the Member States whose currency is the euro shall elect a president for two and a half years, by a majority of those Member States.
***
The next TFEU post is going to look at the Eurogroup on the international scene.
Ralf Grahn
From 1 January 2009 Ján Počiatek, the finance minister of Slovakia, is going to join his colleagues from Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain in the informal Eurogroup.
The president of the European Central Bank (ECB) and the Commission member responsible for economic and financial affairs are invited to the Eurogroup meetings.
The Eurogroup is not a decision-making body. The Council (Ecofin) takes the decisions, but in certain matters only the euro area members participate in the vote.
***
Current treaty
The current Treaty establishing the European Community (TEC) lacks provisions on the Eurogroup, although some Council decisions are made by euro area members.
We turn to the European Convention and the Constitutional Treaty.
***
Draft Constitution
The European Convention proposed a new section with the aim to strengthen the autonomy of the euro area, Section 3a Provisions specific to Member States which are part of the euro area, with an Article III-89 concerning the Eurogroup (OJ 18.7.2003 C 169/44):
Article III-89 Draft Constitution
Arrangements for meetings between ministers of those Member States which are part of the euro area shall be laid down in the Protocol on the Euro Group.
***
Constitutional Treaty
The intergovernmental conference (IGC 2004) adopted the Convention proposal with minor rewording in Article III-195 of the Treaty establishing a Constitution for Europe (OJ 16.12.2004 C 310/85):
Article III-195 Constitution
Arrangements for meetings between ministers of those Member States whose currency is the euro are laid down by the Protocol on the Euro Group.
***
Sweden
The government of non-euro Sweden described the Eurogroup in the draft ratification bill, Lagrådsremiss Fördraget om upprättande av en konstitution för Europa (2 juni 2005), page 172. The Swedish government noted the existing informal cooperation within the monetary union. The Eurogroup is strengthened by being mentioned in the new treaty and by an elected president for two and a half years. The new Protocol on the Euro Group is mentioned by the Swedish government:
”Redan i dag finns ett informellt samarbete mellan finansministrarna från medlemsländerna i valutaunionen, den s.k. eurogruppen. I det konstitutionella fördraget ges den s.k. eurogruppen en fastare ställning genom att den omnämns i fördraget (artikel III-195) och får en vald ordförande på två och ett halvt år. Till det konstitutionella fördraget är fogat ett nytt protokoll om eurogruppen.”
***
Original Lisbon Treaty
In Article 2, point 100, of the original Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) inserted a new Chapter 3a Provisions specific to member states whose currency is the euro (OJ 17.12.2007 C 306/75─76):
100) The following new Chapter 3a and new Articles 115 A, 115 B and 115 C shall be inserted:
‘CHAPTER 3a
PROVISIONS SPECIFIC TO MEMBER STATES WHOSE CURRENCY IS THE EURO
-----
Article 115 B TFEU(ToL)
Arrangements for meetings between ministers of those Member States whose currency is the euro are laid down by the Protocol on the Euro Group.
***
Renumbering
The TFEU table of equivalences confirms that the new Article 115b TFEU (ToL) in the original Treaty of Lisbon was to be renumbered Article 137 TFEU in the consolidated version, under the title ‘Economic and monetary policy’, renumbered Title VIII, and in the renumbered Chapter 4 ‘Provisions specific to Member States whose currency is the euro’ (OJ 17.12.2007 C 306/214).
(In the consolidated version of the Lisbon Treaty, OJ 9.5.2008 C 115, the Tables of equivalences start on page 361, but the ToL numbers have been omitted.)
***
Consolidated Lisbon Treaty: TFEU
Article 137 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/106:
Part Three Union policies and internal actions
Title VIII Economic and monetary policy
Chapter 4
Provisions specific to Member States whose currency is the euro
Article 137 TFEU
Arrangements for meetings between ministers of those Member States whose currency is the euro are laid down by the Protocol on the Euro Group.
***
Sweden
The Lisbon Treaty ratification bill of the Swedish government, Regeringens proposition 2007/08:168 Lissabonfördraget (3 July 2008), on page 183, mentions the Eurogroup in terms similar to the ones used concerning the Constitutional Treaty:
”Redan idag finns ett informellt samarbete mellan finansministrarna från medlemsstaterna i valutaunionen, den s.k. eurogruppen. Genom Lissabonfördraget ges den s.k. eurogruppen en fastare ställning genom att den omnämns i fördraget (artikel 115b i EUF-fördraget). Ett nytt protokoll om eurogruppen fogas till EU-fördraget och EUF-fördraget där det bl.a. framgår att ministrarna från de medlemsstater som har euron som valuta ska välja en ordförande för två och ett halvt år. Beslut ska fattas med en majoritet av dessa medlemsstater.”
***
Priollaud and Siritzky
In ‘Le traité de Lisbonne ; Commentaire, article par article, des nouveaux traités européens (TUE et TFUE)’ (La Documentation Française, 2008), François-Xavier Priollaud and David Siritzky present the Lisbon Treaty provisions of Chapter 4 (Dispositions propres aux États membres dont la monnaie est l’euro) on page 258 to 260.
The authors remark that the strengthened autonomy for the eurozone is a major step forward, but they remind that the Council (Ecofin) remains the decision-making body (not the Euro Group).
***
United Kingdom FCO
‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon (Cm 7311, 21 January 2008) offers the following comment on Article 137 TFEU (on page 13):
“New.Meetings of Euro Group ministers.”
***
UK House of Commons Library
The UK House of Commons Library presented the amending treaty in ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Communities’ (Research paper 07/86, 6 December 2007), on page 62 and 63. Note that the numbering of the Articles changed in the signed treaty (original ToL):
Articles 114, 115 and 115(a) (Constitution Articles III-194, 195 and 196), “Provisions specific to Member States whose currency is the Euro”, are new.
Article 114 allows for measures on the coordination and surveillance of budgetary discipline and economic guidelines to be set specifically for the euro area. Article 115A allows for an informal ‘euro group’ to be set up, consisting of Ministers whose currency is the euro. In practice the ‘euro group’ already exists and meets informally prior to normal ECOFIN meetings. Article 115C allows the Council to adopt decisions establishing common positions relevant to EMU within international financial institutions and conferences as well as measures to ensure unified representation within international financial institutions and conferences. These measures will only cover the euro area and will be decided by Member States of the euro area. The Deutsche Bank thought the recognition of the group as a kind of Euro-ECOFIN Council would “moderately strengthen the role of the Eurogroup and improve policy coordination within the euro area.”
***
Widipedia
With regard to the euro area generally, the Wikipedia article Eurozone offers an introduction to the single currency and a section on the Eurogroup, as well as a number of links (last update 7 November 2008):
http://en.wikipedia.org/wiki/Eurozone
***
Protocol on the Euro Group
The Eurogroup already exists and functions, but formal recognition at treaty level was proposed by the European Convention and agreed by the intergovernmental conferences leading to the Constitutional Treaty (2004) and the Treaty of Lisbon (2007).
The Article in question is a referral to a Protocol. Consequently, the “beef” ─ if there is any ─ is to be found in that Protocol.
The Eurogroup was much discussed during the European Convention. One indication of this interest is that the draft Constitution actually contains a Protocol on the Euro Group, even if the Convention generally left a fairly rudimentary list of protocols (OJ 18.7.2003 C 169/97):
PROTOCOL ON THE EURO GROUP
THE HIGH CONTRACTING PARTIES,
DESIRING to promote conditions for stronger economic growth in Europe and, to that end, to develop ever-closer coordination of economic policies within the euro area,
CONSCIOUS of the need to lay down special provisions for enhanced dialogue between the Member States which have adopted the euro, pending the accession of all Member States of the Union to the euro area,
HAVE AGREED upon the following provisions, which are annexed to the Constitution:
Article 1
The Ministers of the Member States which have adopted the euro shall meet informally. Such meetings shall take place, when necessary, to discuss questions related to the specific responsibilities they share with regard to the single currency. The Commission and the European Central Bank shall be invited to take part in such meetings, which shall be prepared by the representatives of the Ministers with responsibility for finance of the Member States which have adopted the euro.
Article 2
The Ministers of the Member States which have adopted the euro shall elect a president for two and a half years, by a majority of those Member States.
***
If we jump from the draft Constitution to the consolidated version of the TFEU, we notice that Protocol (No 14) on the Euro Group differs mainly in nuances. According to the Lisbon Treaty, following in the footsteps of the Constitution, the Commission shall take part and shall participate in the preparation of meetings, whereas the Convention was content to invite the Commission along with the European Central Bank.
But the main characteristics are still there. Informal meetings are recognised formally. The Eurogroup is still intended to elect a president for two and a half years (OJ 9.5.2008 C 115/283):
PROTOCOL (No 14)
ON THE EURO GROUP
THE HIGH CONTRACTING PARTIES,
DESIRING to promote conditions for stronger economic growth in the European Union and, to that end, to develop ever-closer coordination of economic policies within the euro area,
CONSCIOUS of the need to lay down special provisions for enhanced dialogue between the Member States whose currency is the euro, pending the euro becoming the currency of all Member States of the Union,
HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union:
Article 1
The Ministers of the Member States whose currency is the euro shall meet informally. Such meetings shall take place, when necessary, to discuss questions related to the specific responsibilities they share with regard to the single currency. The Commission shall take part in the meetings. The European Central Bank shall be invited to take part in such meetings, which shall be prepared by the representatives of the Ministers with responsibility for finance of the Member States whose currency is the euro and of the Commission.
Article 2
The Ministers of the Member States whose currency is the euro shall elect a president for two and a half years, by a majority of those Member States.
***
The next TFEU post is going to look at the Eurogroup on the international scene.
Ralf Grahn
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