The Proposed Legal Framework for Establishing a European Monetary Fund (EMF): A Systematic Presentation and a Preliminary Assessment

2017 ◽  
Author(s):  
Christos Gortsos
Keyword(s):  
Legal Framework ◽  
Preliminary Assessment ◽  
European Monetary ◽  
European Monetary Fund

scholarly journals From the European Stability Mechanism to the European Monetary Fund: There and Back Again

2020 ◽  
Vol 21 (4) ◽  
pp. 674-685
Author(s):  
Mauro Megliani
Keyword(s):  
European Commission ◽  
Legal Framework ◽  
The Body ◽  
European Council ◽  
European Monetary ◽  
Transfer Of Functions ◽  
European Stability Mechanism ◽  
European Monetary Fund ◽  
The Eu

AbstractIn December 2018, the Euro Summit endorsed the Term Sheet on the European Stability Mechanism (ESM) reform prepared by the Eurogroup. In this context, the Euro Summit did not acknowledge the proposal of the European Commission to transform the ESM into the European Monetary Fund (EMF), but simply gave the Eurogroup a mandate to draft the relevant amendments to the ESM Treaty and submit them to the European Council of June 2019. Nonetheless, the justifications for the incorporation of the ESM into the body of the European Treaties continue to be valid and may come back into play. In this respect, it is worth highlighting two flaws that have emerged in the proposed transformation of the ESM into the EMF. First, the ESM Treaty does not contain any rule about extinction and transfer of functions. Second, the Commission’s proposal did not clarify what status the EMF would have enjoyed in the EU legal framework.

New Facilities and Institutions

2017 ◽  
Author(s):  
C. Randall Henning
Keyword(s):  
Member State ◽  
Euro Area ◽  
Institutional Arrangements ◽  
European Monetary ◽  
Research Institutes ◽  
European Stability Mechanism ◽  
The International Monetary Fund ◽  
European Monetary Fund ◽  
New Facilities ◽  
Political Matter

As the crisis evolved, euro-area governments first constructed two transitional financial facilities and then created a permanent fund. This chapter reviews the creation of the financial facilities of the euro area culminating in the establishment of the European Stability Mechanism. The ESM treaty contains a strong presumption, but not a strict legal requirement, that the International Monetary Fund (IMF) will also be involved in assistance to a member state. As a political matter, the Fund’s involvement is strongly favored in creditor countries of the euro area. The emergence of the ESM, a new institutional player in crisis finance, prompted a reconsideration of the institutional arrangements under which crisis programs are designed. The chapter reviews proposals from research institutes and the European Parliament to combine resources of the European Commission and the ESM into a European Monetary Fund.

Introduction

2017 ◽  
Author(s):  
C. Randall Henning
Keyword(s):  
Euro Area ◽  
European Central Bank ◽  
International Political Economy ◽  
Euro Crisis ◽  
European Monetary ◽  
Member States ◽  
European Central ◽  
Regime Complex ◽  
The International Monetary Fund ◽  
European Monetary Fund

European governments, against their initial instincts, invited the International Monetary Fund to design financial rescue programs during the euro crisis in cooperation with the European Commission and European Central Bank. These institutions, known as the “troika,” constitute a regime complex in the parlance of international political economy. This book poses four questions about the regime complex for crisis finance in the euro area: Why did European governments choose this particular mix of institutions? What was the strategy of key member states in directing several institutions to collaborate on lending programs? Why did this arrangement endure despite severe conflicts among the institutions? Should the member states of the euro area “go it alone” by creating a European Monetary Fund? This chapter elaborates on these questions and provides an overview of the book.

scholarly journals State Contingent Debt as Insurance for Euro Area Sovereigns

2019 ◽  
Vol 5 (1) ◽  
pp. 64-90
Author(s):  
Maria Demertzis ◽  
Stavros A Zenios
Keyword(s):  
Risk Reduction ◽  
Euro Area ◽  
Risk Sharing ◽  
Banking Union ◽  
European Monetary ◽  
Institutional Reforms ◽  
Eu Member States ◽  
Safety Regulations ◽  
Banking Institutions ◽  
European Monetary Fund

Abstract The authors provide a novel angle to the ongoing discussions by the G20 on sovereign contingent debt and argue that contingent debt could provide market-based insurance to protect the euro area from future debt crises. Risk-sharing with the markets is a practical way forward in the context of the Franco-German debate on risk-sharing among EU member states vs system-wide risk reduction. The financial innovation of contingent debt is a feasible euro area reform that would not introduce risk-sharing between states or require institutional reforms or Treaty changes. However, coordination would be needed. The authors’ suggestion fills a gap in the proposals on the completion of the banking union and the possible establishment of a European Monetary Fund (EMF). These proposals offer institutions-based solutions to crises, with the banking union providing safety regulations that will make banking institutions more resilient, while the EMF will be a ‘fire brigade’ to be called on in emergencies. What has not been tapped are the markets, whose tolerant behaviour to sovereign demands encouraged the build up of debt, while their finicky response exacerbated the crisis.

scholarly journals Le système monétaire européen : Où en sommes-nous?

2005 ◽  
Vol 12 (3) ◽  
pp. 445-463 ◽  
Author(s):  
Bernard Decaluwé
Keyword(s):  
European Monetary Union ◽  
European Monetary System ◽  
Council Of Europe ◽  
European Monetary ◽  
Monetary System ◽  
Political Implications ◽  
The Creation ◽  
European Currency Unit ◽  
Near Future ◽  
European Monetary Fund

The decisions of the Council of Europe on December 5"', 1978, that would lead to the establishment of the European Monetary System, raise a multitude of questions. Among these, the creation of a European currency unit, the ECU, and the announcement of the establishment in the near future of a European Monetary Fund, the E.M.F., are the most symbolic decisions in terms of public opinion as well as the most important in their economic and political implications. In this article, we will show that the development of the ECU and the creation of a E.M.F. with substantial decisional autonomy are the two conditions necessary for strengthening the European monetary union.

scholarly journals Financial crisis and forming of the European monetary fund: Should the European Agreement be changed

2010 ◽  
Vol 62 (4) ◽  
pp. 585-601
Author(s):  
Pero Petrovic ◽  
Aleksandar Zivkovic
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Financial Assistance ◽  
The European Union ◽  
European Monetary ◽  
European Monetary Fund ◽  
The Eu ◽  
The Imf

In this paper, the authors analyze the possibilities and advantages of realization of the idea of creating the European Monetary Fund, the European equivalent of the IMF. European officials and experts believe that the financial crisis in the European Union, as was the case in Greece, can be successfully solved within the EU institutions. The assistance that the EMF would provide would be stipulated by fulfilment of strict conditions. The ECB, which insists on independence, would join it in establishing this mechanism, since not any has been created so far that would provide financial assistance to members of the Eurozone.

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