Sven Giegold

EU summit: German government plans „European Monetary Fund“ against EU institutions

At today’s summit of France, Italy, Spain and Germany, as well as at the EU summit this Thursday and Friday, member states will discuss plans for a multi-speed Europe. In several policy areas it is to be expected that only a part of the 27 remaining EU countries will want to deepen their cooperation. The German government is working to boost the intergovernmental European Stability Mechanism (ESM) into a European Monetary Fund. Commenting on the initiative of the Federal Government, Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group, commented:


„The German government is planning a strike against European democracy. What initially sounds like more Europe is really a weakening of the EU institutions. The German government intends to place the European Monetary Fund under the supervision of the nation states, thereby depriving the European Parliament and the European Commission of their natural role. This would create a double bureaucracy of the ESM in order to elaborate and monitor the reform programmes of member countries in addition to existing capabilities within the EU Commission. The German government is operating within the Council against the EU institutions. Although giving grants to individual euro countries must be decided by the individual states within their budgetary powers, there is no reason to leave the European Parliament and the EU Commission outside of a European Monetary Fund. As the EU banking resolution rules show, mixed solutions are also possible between Member States and European institutions that safeguard the rights of the European Parliament and the European Commission.“

“The EU Commission can not idly stand watching this strike against the institution. Jean-Claude Juncker and Pierre Moscovici need to submit a proposal on a European Monetary Fund within the community method. The European Parliament has already made it clear by a large majority that it wants all further steps towards more Europe under the community method. It is now up to the EU Commission to strengthen this position.“

“The plans of the German government are a litmus test for Martin Schulz on his pro-European positions. If Schulz wants to remain indeed an enthusiastic European then he must reject the German government’s strike against the EU institutions. Schulz must also defend European democracy as a SPD chancellor candidate, as he has done successfully as Parliament’s president.“