Completing Economic and Monetary Union 4: Political Union
The EU wants to strengthen "economic policy coordination, convergence and solidarity" in the eurozone. It therefore proposes the creation of four Unions: an Economic Union, a Financial Union, a Fiscal Union and a Political Union. This cepPolicyBrief deals with the Political Union which covers strengthening parliamentary control in the European Semester, the unified external representation of the eurozone in the IMF and the establishment of a "Treasury".
In cep's view, greater involvement of the national parliaments in the adoption of the national Reform and Stability Programmes may facilitate their implementation in the respective Member States. The desired ex-ante coordination of the eurozone on "all positions" relating to IMF matters is in breach of EU law. It also harbours the risk that the coordinated positions will lack any clear assertions due to divergent interests. Creating a "Treasury" must not result in the German Bundestag losing its "control over fundamental budgetary decisions".