23rd Mar 2018

No eurozone-only assembly, say MEPs

  • The Van Rompuy paper will top the agenda at the October EU summit (Photo: European Parliament)

MEPs have dismissed suggestions that a new parliamentary body should be set up solely for eurozone members stating that “no new accountability structures specific to the euro-area must be established.”

In an unofficial reflection paper prepared by the three MEPs representing parliament in advance of negotiations with Herman Van Rompuy, the deputies said: "the Euro is the currency of the European Union and European Parliament is the parliament of the European Union. The European Parliament, therefore, is the parliament of the Euro."

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

Van Rompuy recently mooted the possibility of a separate body for the eurozone-17 in an ideas paper circulated to member states.

The EU Council chief also hinted at establishing "a central budget for the euro area" in order to "deal with asymmetric shocks and help prevent contagion."

The parliament's team of ‘sherpas’ consists of German conservative Elmar Brok, along with Liberal group leader Guy Verhofstadt, and Italian centre-left deputy Roberto Gaultieri.

In a five page memo, MEPs claim that reforms should be based on “four building blocks”: banking, fiscal, economic and political union.

In a bid to increase political integration, they also called for all European political parties to appoint a candidate for the Commission presidency for the 2014 elections.

Meanwhile, the Economic and Monetary Affairs commissioner should become the official "treasurer of the EU" and chair eurozone finance minister meetings.

The sherpas also insist that “a more integrated fiscal union should include different forms of fiscal solidarity, from short-term funding instruments on a limited and conditional basis, to gradual roll-over into a redemption fund.” This could also mean the swift introduction of joint liability eurobills to replace short-term government debt.

The idea of a redemption fund pooling all eurozone sovereign debt over the 60% threshold set out in the Stability and Growth Pact to be paid off over 20 years, was presented earlier this year by the German Council of Economic Experts and is unlikely to require a treaty change.

The paper comes as the parliament is set to begin battling with member states over the commission’s ambitious banking union legislation. Although the proposals include a revision of the rule-book establishing the European Banking Authority, which was jointly approved by MEPs and governments l in 2011, the regulation to establish the European Central Bank as the eurozone’s single financial supervisor only gives EU governments a say.

MEPs insist that they will treat the two files as a package with an equal say for parliament. They are also insisting on greater scrutiny powers over the ECB in its new role.

Negotiations between Van Rompuy, the commission and parliament will finalise a set of proposals to top off the agenda at the European Council summit on October 18-19.

Van Rompuy is hoping that member states can agree on the less politically-charged proposals which can be effected without a convention and treaty change.

Germany backs pooling of debt, no joint liability

The idea of a debt redemption fund for eurozone countries is not completely unpalatable to the German government, provided each state remains liable for its own debt, a German finance ministry official has said.

EU data chiefs rally behind UK over Cambridge Analytica

EU leaders at a Brussels summit demand social networks and digital platforms guarantee transparency and privacy. Their call comes amid growing backlash against Facebook and Cambridge Analytica over voter manipulation.

EU data chiefs rally behind UK over Cambridge Analytica

EU leaders at a Brussels summit demand social networks and digital platforms guarantee transparency and privacy. Their call comes amid growing backlash against Facebook and Cambridge Analytica over voter manipulation.

Trump keeps EU leaders waiting on tariffs

European leaders postponed their reaction to US announcement that the EU would be exempted from tariffs on steel and aluminium. "The devil is often in the details", said the Belgian PM.

News in Brief

  1. EU wants 'Paris' climate strategy within 13 months
  2. Workload of EU court remains high
  3. Spain's supreme court charges Catalan separatist leaders
  4. EU calls for 'permanent' exemption from US tariffs
  5. Summit backs guidelines for future EU-UK talks
  6. Macron support drops as public sector workers go on strike
  7. EU leaders condemn Turkey for illegal actions in Aegean Sea
  8. Parliament must publish 'trilogue' documents, court says

Stakeholders' Highlights

  1. EUobserverStart a Career in EU Media. Apply Now to Become Our Next Sales Associate
  2. EUobserverHiring - Finance Officer With Accounting Degree or Experience - Apply Now!
  3. ECR GroupAn Opportunity to Help Shape a Better Future for Europe
  4. Counter BalanceControversial Turkish Azerbaijani Gas Pipeline Gets Major EU Loan
  5. World VisionSyria’s Children ‘At Risk of Never Fully Recovering', New Study Finds
  6. Macedonian Human Rights MovementMeets with US Congress Member to Denounce Anti-Macedonian Name Negotiations
  7. Martens CentreEuropean Defence Union: Time to Aim High?
  8. UNESDAWatch UNESDA’s President Toast Its 60th Anniversary Year
  9. AJC Transatlantic InstituteAJC Condemns MEP Ana Gomes’s Anti-Semitic Remark, Calls for Disciplinary Action
  10. EPSUEU Commissioners Deny 9.8 Million Workers Legal Minimum Standards on Information Rights
  11. ACCAAppropriate Risk Management is Crucial for Effective Strategic Leadership
  12. EPSUWill the Circular Economy be an Economy With no Workers?

Latest News

  1. Europe needs corporate tax reform - a digital tax isn't it
  2. EU data chiefs rally behind UK over Cambridge Analytica
  3. Russian diplomats risk EU expulsions over UK attack
  4. Three presidents should attend Bosnia memorial
  5. Trump keeps EU leaders waiting on tariffs
  6. EU summit takes hard look at Russia
  7. Germany casts doubt on Austrian intelligence sharing
  8. EU leaders set for 'stormy debate' on digital tax at summit