Agora: Competing visions of euro-area governance: more power to the Commission or to the member states?

24 May 2018

10:00-11:00 | Sax Room


Valdis Dombrovskis

European Commission

Vice-President for the Euro and Social Dialogue

Guntram Wolff




After President Juncker set out in 2017 his priority to deepen the EMU, the Commission came forward with its package which included a proposal to establish a European Monetary Fund, a proposal to bring the substance of the Treaty on Stability, Coordination and Governance into the Union legal framework, ideas on new budgetary instruments for a stable euro area within the Union framework and initial thoughts on the creation of a European Minister of Economy and Finance who could serve as Vice-President of the Commission and chair the Eurogroup. The proposals look likely to drive a wedge between the member states with those supporting risk mutualisation and those leaning towards risk reduction, many declaring that the EU should make better use of the tools that it already has at its disposal. As memory of the crisis recedes, will the opportunity to harness political momentum also be lost? Will member states hand over real powers to a European finance minister? Will the member states accept a sizeable Euro-area budget? Can France and Germany agree on a future path and if so, do they have the political weight to push it forward? Where do the non-Euro states fall into this – is this a two speed Europe?