Legal provisions of COM(2015)603 - Measures in view of progressively establishing unified representation of the euro area in the International Monetary Fund

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dossier COM(2015)603 - Measures in view of progressively establishing unified representation of the euro area in the International Monetary Fund.
document COM(2015)603 EN
date October 21, 2015


SECTION 1
DEFINITIONS AND PURPOSE 

Contents

Article 1 - Definitions

For the purposes of this Decision, the following definitions apply:

(1) euro area Member States means the Member States whose currency is the euro;

(2) euro area means the Union when exercising its competences specific to the euro area Member States.

Article 2 - Purpose

This Decision lays down provisions for the progressive establishment of a unified representation as well as common positions of the euro area within the International Monetary Fund (IMF) until the euro area will have obtained full membership of the IMF.


SECTION 2
UNIFIED REPRESENTATION OF THE EURO AREA IN THE IMF AND COORDINATED ESTABLISHMENT OF ITS POSITIONS

Article 3 - Unified representation of the euro area in the IMF

Euro area Member States, supported by the Commission and the European Central Bank (ECB), shall take all necessary actions for the establishment, by 2025 at the latest, of a unified representation of the euro area within the IMF, which shall be based on the following principles:

– in the Board of Governors, presentation of the views of the euro area by the President of the Eurogroup;

– in the International Monetary and Financial Committee (IMFC), representation of the euro area by the President of the Eurogroup;

– in the IMF Executive Board, direct representation of the euro area by the Executive Director of a euro area constituency, following the establishment of one or several constituencies composed only of euro area Member States;

– election of the Executive Director, as referred to above, upon proposal of the President of the Eurogroup and in accordance with the procedure provided for in Article 2 of Protocol No 14 on the Eurogroup, annexed to the Treaties;

Article 4 - Coordinated establishment of the positions to be taken by the euro area

When the unified representation envisaged at Article 3 is attained, the following provisions shall apply:

(a)Without prejudice to any common position adopted by the Council pursuant to Article 138(1) TFEU, all positions to be taken, orally or through written statements, within IMF organs shall be fully coordinated in advance within the Council, the Eurogroup, the EFC and/or the Euro Working Group (EWG), as appropriate.

(b)A dedicated support structure shall be established within the IMF in order to support all actors engaged in the unified representation of the euro area in accordance with Article 3


SECTION 3
TRANSITIONAL ARRANGEMENTS

Article 5 - Transitional arrangements

Until unified representation based on the principles listed under Article 3 is fully attained, Articles 6 to 9 shall apply.

Article 6 - Representation of the euro area in the IMF Executive Board

1. The euro area Member States and the Eurogroup, the Commission, and the ECB shall jointly seek to secure with the IMF the status of observer for the euro area within the IMF Executive Board according to the modalities as set out in paragraph 2.

2. The euro area shall be represented in the Executive Board by the representative of a euro area Member State already member of the Board. He/She shall be designated for two and a half years in accordance with the procedure provided for in Article 2 of Protocol No 14 on the Eurogroup annexed to the Treaties. The Commission and the ECB shall also be able to attend meetings and intervene, as appropriate.

 3.An observer office shall be established within the IMF in order to support the exercise of the euro area's observer rights.

Article 7 - Representation of the euro area in the IMFC

1. The euro area Member States and the Eurogroup, the Commission, and the ECB shall jointly seek to secure with the IMF a right for the euro area to address the IMFC. This right shall be without prejudice to the arrangements which the Union as a whole enjoys in the IMF at the moment.

2. In the IMFC, the euro area shall be represented by the President of the Eurogroup, the Commission and the ECB, which shall be able to intervene in IMFC meetings, as appropriate. 

Article 8 - Euro Area internal coordination as regards constituency arrangements of the IMF

1. All questions related to constituency arrangements of the IMF involving euro area Member States shall be fully coordinated and agreed in advance within the Council, the Eurogroup, the EFC and/or the EWG, as appropriate.

2. The positions taken in relation to constituency arrangements, as referred to in paragraph 1, or changes thereto, shall be consistent with the objectives of increasing coherence of the representation of the euro area and achieving its unified representation within the IMF.

3. In the transitional phase, euro area Member States shall regroup to establish one or several constituencies composed of only euro area Member States.

Article 9 - Euro area internal coordination as regards matters of euro area relevance

Without prejudice to any common position adopted by the Council pursuant to Article 138(1) TFEU, euro area Member States shall, within the Council, the Eurogroup, the EFC and/or the EWG, as appropriate, closely coordinate and agree on common positions on all matters of euro area relevance for the IMF Executive Board and Board of Governors meetings and shall use common statements on those issues.


SECTION 4
COMMON PROVISIONS

Article 10 - Euro area Enlargement

When the Council decides that a Member State fulfils the necessary conditions for the adoption of the euro, the euro area Member States and the Eurogroup, the Commission, and the ECB shall jointly seek to secure the necessary changes within the IMF.

Article 11 - Coordination with non-euro area Member States

Close cooperation with non-euro area Member States shall be organised within the Council and the EFC, on matters related to the IMF. Common positions shall be coordinated on matters relevant for the European Union as a whole.

Article 12 - Reporting

The Commission shall, in consultation with the Eurogroup and the ECB, regularly report on coordination on euro area matters in the IMF and other international financial institutions to the European Parliament and the Council.

Article 13 - Addressees

This Decision is addressed to the euro area Member States.

Article 14 - Entry into force

This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.