Commission sets out roadmap for further economic, monetary union

The European Commission has set out a roadmap for deepening the Economic and Monetary Union (EMU), including concrete steps to be taken over the next 18 months.

The proposed initiatives aim to "enhance the unity, efficiency and democratic accountability of EMU by 2025" according to a statement released on December 6.

"Today's robust economic growth encourages us to move ahead to ensure that our Economic and Monetary Union is more united, efficient and democratic, and that it works for all of our citizens," said President Jean-Claude Juncker. 

"There is no better time to fix the roof than when the sun is shining," he added.

The work envisioned by the Comission seeks to further deepen EMU which will create more jobs, growth, investment, social fairness and macroeconomic stability.

"The single currency offers protection and opportunities to Europeans, and a strong and stable euro area is essential for its members as well as for the EU as a whole," the statement said.

Ten years after the global financial crisis that hit many of the EU countries, Europe is showing a robust recovery with economic growth in all member states.

Unemployment in the EU is also at its lowest level since 2008,while the economic sentiment is at its highest since 2000.

Last week, the European Stability Mechanism secretary general Kalin Anev Janse called Europe's strong momentum, the "Euroboom", with Europeans showing the highest level of support for the single currency since its introduction in 1999.

Anev Janse argued that "almost 3/4 of people in euro area are in favour of the euro" which gives politicians a mandate to continue to build the monetary union. 

The Commission refers to a "window of opportunity" that has emerged, which allows Europe to strengthen it economic and monetary union.

Along with the road map, the EU's executive cabinet put forward four major initiatives.

European Monetary Fund

According to the Commision, Europe's Monetary Fund (EMF) would build on the ESM architecture, assisting member states in the euro area that go through financial distress. 

The EMF would provide common backstop to the Single Resoluton Fund and act as a "last resort lender" and faciliate the resolution of distressed banks.

The Commision is also proposing to integrate the substance of the treaty on stability, coordination and governance into the Union legal framework, taking into account the appropriate flexibility built into the Stability and Growth Pact and identified by the Commission since January 2015.

A communication on new budgetary instruments for a stable euro area is also proposed, including a reform delivery tool, a dedicated convergence facility for Member States on their way to joining the euro, a backstop for the Banking Union, and a stabilisation function in order to protect investments in the event of large asymmetric shocks.

The Commission would like to strengthen the Structural Reform Support Programme, by doubling the funding available for technical support activities from 2018-2020, reaching €300 million by 2020.

It proposes targeted changes to the Common Provisions Regulation governing the European Structural and Investment Funds (ESIF) in order to extend the possibilities to use part of their performance reserve in support of agreed reforms.

The Commission is also proposing to review possible functions of a European Minister of Economy and Finance who could serve as Vice-President of the Commission and chair the Eurogroup at the same time, which is possible under the current EU Treaties.

The executive cabinet said that merging the two roles, "would strengthen the coherence, efficiency, transparency and democratic accountability of economic policy-making for the EU and the euro area."

When delivering the 2017 State of the Union address last September, Jean-Claude Juncker comitted to deepen Europe's Economic and Monetary Union, which is one of the top priorities of the Commission.