COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN CENTRAL BANK A roadmap for moving towards a more consistent external representation of the euro area in international fora
Date: 2015-10-21
Institutions: European Commission, Secretariat-General
Subjects: Economic and Monetary Union, International Monetary Fund, economic growth, economic recession, economic stabilisation, euro area, international meeting, international organisation, operation of the Institutions, the EU's international role

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   EN 

   EUROPEAN COMMISSION  Brussels, 21.10.2015  COM(2015) 602 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN CENTRAL BANK A roadmap for moving towards a more consistent external representation of the euro area in international fora  
 
 
1. 

INTRODUCTION  

In order to complete the EMU, greater responsibility and integration at EU and euro area level 
must go hand in hand with institutional strengthening. One of the areas where concrete steps 
towards this objective are explicitly foreseen in the Treaty and can therefore be taken already 
today is the external representation of the euro area. 

The euro area is a large open economy with international policy responsibilities.  
The economic and financial weight of the euro area1, and the existence of a single monetary 
and exchange rate policy have made euro area policy decisions and economic developments 
increasingly relevant for the world economy. The euro is a successful and stable currency. It 
is  shared  by  19  EU  Member  States  and  more  than  330  million  citizens.  It  has  provided  its 
members with price stability and shielded them against external instability. Despite the recent 
crisis, it remains the second most  important currency in the world, with a share of almost a 
quarter  of  global  foreign  exchange  reserves,  and  with  almost  sixty  countries  and  territories 
around the world either directly or indirectly pegging their currency to it. 

The  political  relevance  of  the  euro  area  has  been  greatly  enhanced  in  recent  years.  The 
European Semester, along with adoption of the so-called six-pack and two-pack legislation2 as 
well  as  the  Treaty  on  the  Stability,  Coordination  and  Governance  in  the  Economic  and 
Monetary  Union3  have  integrated,  strengthened  and  broadened  EU-level  surveillance  of 
Member  State  policies  in  essential  areas  of  macroeconomic  and  budgetary  relevance.  The 
European Stability Mechanism was established as the permanent crisis resolution mechanism 
for  the  countries  of  the  euro  area.  The  Union  has  also  put  in  place  a  Banking  Union  with 
centralized supervision and resolution for banks in the euro area and open to all other Member 
States. 

The external representation of the Union, when exercising its competences specific to the euro 
area (hereinafter referred to as "external representation of the euro area"), has not kept up with 
those  developments.  This  limits  the  effectiveness  of  the  euro  area  voice  in  the  international 
financial  institutions.  The  progress  that  has  been  achieved  on  further  internal  integration  of 
the  euro  area  needs  to  be  projected  externally,  notably  through  progress  towards  united 
external  economic  representation.  The  external  representation  needs  to  be  made  more 
coherent to allow the euro area to play a more active role in international financial institutions 
and to shape effectively its future role in the global financial architecture. This concept was 
already highlighted as one of the key priorities in the Commission's Blueprint for a Deep and 
Genuine Economic and Monetary Union4.   
The Five President's report of June 2015 on the future of the Economic and Monetary Union5, 
further  stressed  that  a  strengthened  international  voice  is  an  integral  part  of  the  ongoing 
efforts  to  improve  the  economic  governance  of  the  euro  area.  And  as  the  EMU  evolves 
towards  Economic,  Financial  and  Fiscal  Union,  its  external  representation  should  also  be 
increasingly unified. 

1  The  Union  when  exercising  its  competences  specific  to  the  Member  States  whose  currency  is  the  euro  in 
accordance with the Treaties (Title VIII, Chapter 4, TFEU). 
2 http://europa.eu/rapid/press-release_MEMO-13-318_nl.htm.  
3 Treaty on the Stability, Coordination and Governance in the Economic and Monetary Union, 1 February 2012: 
http://www.consilium.europa.eu/european-council/pdf/Treaty-on-Stability-Coordination-and-Governance-
TSCG/ . 
4  A  Blueprint  for  a  deep  and  genuine  economic  and  monetary  union  -  COM(2012)  777,  30.11.2012, 
http://ec.europa.eu/archives/commission_2010-2014/president/news/archives/2012/11/pdf/blueprint_en.pdf. 
5  Five  Presidents'  Report  "Completing  Europe's  Economic  and  Monetary  Union",  22  June  2015, 
http://ec.europa.eu/priorities/economic-monetary-union/docs/5-presidents-report_en.pdf". 

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The  European  Parliament  has  also  called  for  a  unified  external  representation  of  the  euro 
area6.  

Considerable progress has been made in strengthening the Union and the euro area external 
representation in many international economic and financial fora, but further steps are needed 
to achieve a truly unified external representation.  

This  Communication  therefore  sets  out  a  roadmap  towards  an  increasingly  unified  external 
representation  of  the  EMU  around  which  a  consensus  in  the  Council  and  in  the  European 
Parliament could be shaped. This process should take place gradually 

External  representation  of  the  euro  area  is  still  particularly  fragmented  in  the  International 
Monetary  Fund  (IMF),  which  through  its  lending  instruments  and  surveillance  is  a  key 
institutional actor in global economic governance. The Commission therefore puts forward in 
parallel a legal proposal laying down measures in view of establishing a unified representation 
of the euro area in the IMF. This does not prejudge future developments that could call for a 
further strengthening of euro area representation also in other international fora. 

2. 

CURRENT EURO AREA REPRESENTATION IN INTERNATIONAL FORA 

Despite important euro area interests, external representation of the euro area at the IMF is, 
for the moment, highly fragmented and not very effective.  

The  IMF,  through  its  lending  instruments  and  surveillance,  is  an  essential  pillar  of  global 
economic and financial governance. It has played a key role, together with the Commission 
and  the  ECB,  in  shaping  the  programmes  aimed  at  rescuing  Member  States  hit  by  the 
sovereign  debt  crises.  In  addition,  the  strengthened  governance  framework  for  economic 
policy coordination and strong convergence of financial sector regulation and supervision in 
the  context  of  the  Banking  Union  mean  that,  in  the  future,  the  IMF  will  need  to  go  well 
beyond a national perspective in its assessment of supervision and crisis management in the 
euro  area.  An  effective  euro  area  representation  would  allow  delivering  a  single  euro  area 
message  at  the  IMF  on  issues  such  as  economic  and  fiscal  policy,  macroeconomic 
surveillance,  exchange  rate  policies,  and  financial  stability.  A  more  coherent  representation 
would also be to the benefit of third countries, in particular by a stronger and more consistent 
euro area contribution to global economic and financial stability.  

Against this background, this communication and the legal proposal adopted together with it 
focus on the IMF as a first step in strengthening the external representation of the euro area.  

The objective of ensuring an adequate representation of the Union in general and the euro area 
in  particular  obviously  goes  beyond  the  IMF  and  is  relevant  also  in  a  number  of  other 
international fora, of which some are mentioned below.  

Adequate representation in the G7 and the G20 gives the Union and the euro area the means 
to  provide  input  into  the  global  policy  agenda  and  to  promote  European  solutions  to  global 
challenges  in  key  areas  such  as  macroeconomic  policy  coordination,  financial  regulation 
reform and tax transparency. At the G7 Leaders level, the Union and euro area are represented 
by  the  President  of  the  European  Council  and  the  President  of  the  Commission.  At  the  G7 
Finance  Ministers  and  Central  Bank  Governors  level,  the  euro  area  is  represented  by  the 
Eurogroup President, the Commission and the European Central Bank (ECB). At the level of 
the  G20  heads  of  state  and  government,  the  Union  and  euro  area  are  represented  by  the 

6  European  Parliament  resolution  of  25  October  2011  on  Global  Economic  Governance  (2011/2011(INI), 
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+TA+P7-TA-2011-
0457+0+DOC+PDF+V0//EN. 

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President  of  the  European  Council  and  the  President  of  the  Commission.  The  Commission 
and the ECB present the positions of the euro area when the G20 deals with matters of euro 
area competence at meetings of Finance Ministers and Central Bank Governors.  

The Financial Stability Board (FSB) coordinates international work on financial regulation 
and  is  politically  accountable  to  the  G20.  The  Commission  and  the  ECB  are  members 
representing the Union jurisdiction. The Commission is also a member of the FSB Resolution 
Steering  Group.  Representation  in  the  FSB  gives  the  means  to  provide  input  into  the 
development and implementation of effective regulatory and supervisory policies, as well as 
to  address  vulnerabilities  affecting  financial  systems  in  the  interest  of  global  financial 
stability.  

The  United  Nations  (UN)  in  some  cases  discuss  matters  of  euro  area  relevance  such  as 
recently  the  framework  for  international  debt  restructuring.  In  2011,  the  UN  General 
Assembly (UNGA) adopted Resolution A/65/276 upgrading the observer status of the Union 
and enhancing its participation rights in the work of the UNGA, inter alia allowing it to make 
interventions  on  behalf  of  the  EU  (and  its  Member  States)  with  the  same  priority  as  other 
major groups, to present proposals and to participate in the general debate each September7. 
Besides  its  enhanced  observer  status,  the  Union  is  a  party  to  more  than  50  UN  multilateral 
agreements and conventions signed in the UN framework, as the only non-State participant.  

The OECD regularly organises economic surveys of the euro area. The Union has a specific 
status at the OECD and enjoys the same prerogatives as members, with two exceptions. The 
Union does not have the right to vote and does not make a statutory contribution to the OECD 
budget.  The  Union  is  a  full  member  of  a  number  of  OECD  committees,  including  the 
Development Assistance Committee.   

There is no specific euro area focus in the work of the World Bank. The Union as such is not 
represented  on  the  Board  of  Directors  of  the  World  Bank.  The  Commission  has  observer 
status in the Development Committee (i.e. Ministerial level). 

Overall, with the exception of the IMF, representatives of the Union and/or the euro area are 
present in each of the above fora that have a specific euro area focus. However, that has not 
always  ensured  that  the  euro  area  speaks  with  a  single  voice.  Euro  area  interests  are 
represented  in  a  particularly  effective  manner  when  positions  are  well  coordinated 
beforehand, but in practice that is not always the case.  

Given  the  dynamic  nature  of  the  global  financial  architecture,  an  appropriate  external 
representation  of  the  euro  area  should  also  be  applied  to  newly  emerging  international 
financial institutions. The issue of the external representation, for example, has also come up 
in  the  context  of  the  discussions  on  the  formation  of  new  constituencies  at  the  Asian 
Infrastructure Investment Bank (AIIB), where 14 Member States (10 of which members of the 
euro area) have been accepted as founding members.  

3. 

OBSTACLES TO A MORE EFFECTIVE EXTERNAL REPRESENTATION AT THE 
IMF 

Today  several  organisational  and  institutional  obstacles  hamper  or  even  hinder  effective 
external representation of the euro area and the delivery of a single message at the IMF.  

High fragmentation among Member States 

7 http://www.unbrussels.org/images/pdf/2011/A_RES_65_276.pdf. 

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The current fragmentation of the euro area Member States in the IMF Executive Board, where 
the  19  euro  area  Member  States  are  at  the  moment  spread  over  six  constituencies8  and  two 
single seats, undermines the effectiveness of the euro area representation at the IMF. The euro 
area Member States that are in constituencies with third countries are often not in a position to 
support  common  euro  area  positions  or  sign  common  euro  area  statements,  given  divergent 
views or internal arrangements in their respective constituencies. As a result, Member States 
are often prevented from voicing common positions on key issues, including on IMF quota, 
adjustment  programmes,  surveillance  or  other  policy  issues.  As  a  result,  euro  area 
representation  is  weakened,  while  the  efforts  to  voice  common  positions  are  hindered,  and 
with it, the ability to push forward a single euro area agenda and common priorities.  

Insufficient representation of the euro area as a whole 

At the moment, there is no dedicated representative of the euro area with an official mandate 
to present and defend euro area policy and interests in the IMF Executive Board. This task is 
currently  assumed  by  the  President  of  the  EURIMF9.  The  current  set-up  does  not  take  into 
account  the  significant  changes  in  the  internal  euro  area  governance  in  recent  years. 
Fragmented representation alongside the absence of an official representative of the euro area 
who  would  have  a  clear  mandate  to  represent  the  euro  area  in  the  IMF  Executive  Board  is 
inconsistent  with  the  increased  focus  by  the  IMF  on  the  euro  area  as  a  whole,  whereby  the 
IMF  takes  into  account  the  euro  area  aspects  in  national  surveillance  and  assesses  common 
euro  area  policies  such  as  the  macro-economic  policy  mix,  financial  regulatory  reform  or 
issues related to banking union.  

At  the  moment,  only  the  ECB  has  an  observer  status  at  the  IMF  Executive  Board  and  may 
participate  on  certain  topics related to  its  monetary  responsibilities.  There is  therefore  room 
for  strengthening  the  euro  area  representation,  notably  by  moving  to  a  dedicated 
representative of the euro area for all topics of relevance. 

Insufficient coordination at euro area level 

The representation of the euro area at the international level in the context of the Economic 
and  Monetary  Union,  and  in  particular  on  IMF  matters,  was  agreed  upon  at  the  Vienna 
European Council of 1998.  

At  the  moment,  coordination  takes  place  only  at  the  Union  level  and  there  is  no  specific 
coordination  at  the  euro  area  level.  The  coordination  of  common  messages  on  IMF  policy 
issues  takes  place  in  the  Economic  and  Financial  Committee  (EFC)  and  its  permanent 
Working Group on IMF matters (SCIMF). These  common  messages are then transmitted to 
the Member States representatives in the Fund (EURIMF) for the IMF Board meetings. The 
Member  States  representatives  can  then  decide  to  issue  common  statements.  This  is  done 
regularly for issues such as the surveillance of the euro area, and the Union Financial Sector 
Assessment Programme (FSAP). It is, however, not standard for other matters where Member 
States thus agree on a case-by-case basis. There is also coordination on messages on euro-area 
programme countries and Article IV consultations with Member States.  

8 An IMF constituency is a group of Fund member countries that are represented by one Executive Director on 
the  IMF  Executive  Board.  The  structure  of  the  IMFC  also  mirrors  that  of  the  Executive  Board  and  its  24 
constituencies.  
9  Since  1  July  2007,  the  President  of  EURIMF  is  selected  by  consensus  among  the  representatives  of  all  EU 
Member  States  in  the  IMF  for  a  period  of  two  years,  irrespective  of  the  actual  Council  Presidency.  His  tasks 
include preparing and chairing the EURIMF meetings, presenting agreed Union/euro area positions and giving 
Presidency  statements  at  the  Executive  Board  meetings,  as  well  as  serving  as  liaison  to  IMF  Management.  It 
should be noted however that the primary role of the Executive Director elected as EURIMF President remains 
to represent his own constituency.  

5 

 
 
                                                 
Much  progress  has  been  made  in  recent  years  on  coordination,  with  coordination 
arrangements  further  strengthened  in  2007,  the  election  of  a  EURIMF  President,  the 
improvement of the working relationship between the EFC/SCIMF and the EURIMF, and the 
increased coordination among EURIMF members on Executive Board strategies. But current 
coordination  arrangements  continue  to  have  limits.  There  are  many  examples  where 
coordination  on  key  IMF  files  has  been  suboptimal  or  where  the  Member  States  decided  to 
support their national positions rather than defend the common Union position. This weakens 
the ability of the Member States in the IMF to push forward the issues of a common euro area 
interest. 

TOWARDS A MORE CONSISTENT AND EFFECTIVE EXTERNAL 

4. 
REPRESENTATION OF THE EURO AREA IN THE IMF 

Given  the  key  role  of  the  IMF  in  global  economic  and  financial  governance,  the  current 
situation calls for strengthened coherence and a unified voice of the euro area at the IMF.  

Arrangements for a more consistent and effective external representation of the euro area in 
the  IMF  should  be  set  out  and  agreed  without  delay,  but  implemented  step-by-step  to 
allow  all  actors  involved  –  at  the  Union  and  the  international  level  -  to  make  the  necessary 
legal and institutional adjustments.  

A  three-pronged  approach  should  be  envisaged:  (i)  strengthened  coordination  among  the 
Member States of the euro area; (ii) improved representation of the euro area within the IMF; 
and  (iii)  once  the  necessary  adjustments  to  the  IMF  governance  are  made,  a  unified 
representation and a single seat for the euro area.  

While  focused  on  the  euro  area,  this  reinforced  euro  area  representation  must  nonetheless 
maintain  and  where  possible  further  strengthen  coordination  also  with  the  non-euro  area 
Member  States,  in  order  to  preserve  the  integrity  of  the  single  market  and  the  Union  as  a 
whole. Stronger cooperation needs to take place with other IMF members as well. 

1) Strengthening coordination among euro area Member States 

a)  The  current  coordination  arrangements  of  the  euro  area  on  IMF matters  should  be 
strengthened.  Member  States  agreed  in  2007  to  prepare  common  euro  area  statements  on 
issues directly and exclusively related to euro area common policy. This agreement should be 
strengthened  and  extended  in  order  to  set  out  the  requirement  for  systematic  common 
statements  on  all  IMF  policy,  country  and  surveillance  issues  of  relevance  to  the  euro  area. 
The crisis has shown that it is of utmost importance for the euro area to speak with a single 
voice in particular on IMF programmes, financing arrangements and crisis resolution policies. 
Enhanced coordination will enlarge the scope of topics on which the euro area Member States 
issue common statements to the Executive Board.  

Current coordination arrangements and structures should be upgraded as follows:   

(1)  

Establish a regular consultation framework: The Commission and IMF systematic 
information exchange of documents is based on a 1972 agreement. The Commission 
intends  to  update  that  agreement  and  to  ask  for  a  regular  consultation  framework  to 
take  into  account  the  current  situation  of  joint  interest.  This  implies  transmission  of 
documents prepared by staff on horizontal issues concerning the euro area (e.g., Art. 
IV  reports  for  the  euro  area  and  Union/euro  area  Member  States,  Financial  Sector 
Assessment  Programmes  (FSAPs)  for  euro  area  Member  States  as  well  as 
documentation related to the Union and euro area programme countries) at the same 
time as these documents are transmitted to Executive Directors.  

6 

 
 
 
(2) 

(3) 

(4) 

Upgrade the coordination infrastructure: The EFC Sub-Committee on IMF matters 
(SCIMF) should be turned into an EFC Sub-Committee on all International Financial 
Institutions.  At  the  moment,  IMF  related  topics  of  relevance  for  the  euro  area,  are 
discussed directly in the Eurogroup Working Group (EWG). It should be considered to 
establish a SCIMF/EFC Sub-Committee in euro area composition. This 'Euro SCIMF' 
should report to the EWG. Similarly, a EURIMF in euro area composition should be 
created in Washington, D.C. alongside the EU EURIMF, which exists already now.  

Update  existing  coordination  arrangements  on  IMF  matters  in  Brussels:  The 
current working arrangements on IMF coordination should be strengthened. The scope 
of coordination should be enlarged to all matters of relevance for the euro area. There 
should be a requirement to  issue more systematically common statements ("common 
grays")  instead  of  statements  by  individual  Member  States.  This  update  could  also 
include  a  better  forward  planning  on  coordination  in  the  form  of  a  common 
EURIMF/SCIMF  work  programme,  an  increased  focus  on  IMF  matters  in  the 
EFC/EWG  and  ECOFIN/Eurogroup  agendas  and  a  more  regular  reporting  of  the 
EURIMF  President  to  the  EFC/EWG.  The  Eurogroup  should  issue  common 
statements on IMF issues where a political unified view of the euro area is essential.  

Enhance  coordination  in  Washington,  D.C.:  Changes  in  working  methods  in 
Brussels  also  have  to  be  reflected  in  the  EURIMF  in  Washington,  D.C.  such  as:  (i) 
regular EURIMF meetings on matters of euro area relevance based on the IMF work 
programme. This forward planning should also help guide work in Brussels; (ii) issue 
systematically  common  statements;  (iii)  when  common  statements  are  not  possible, 
ensure  that  common  messages  on  common  euro  area  policies  such  as  fiscal  and 
monetary policy are used in the individual statements issued by Member States; (iii) 
EURIMF  members  should  agree  even  more  systematically  on  common  Board 
strategies.  Member  States  should  commit  to  avoiding  expressing  views  in  the 
Executive Board that contradict each other. 

b)  Strengthening  of  the  coordination  arrangements  of  the  euro  area  on  IMF  matters 
should also go hand in hand with an improved accountability towards the Council and 
European Parliament. Current statements addressed to the IMF Spring and Annual Meetings 
should be replaced by a statement from the Eurogroup. The European Parliament should be 
fully informed about these statements. 

2) Improving representation of the euro area through a rearrangement of constituencies 
at the IMF 

Constituencies  should  be  rearranged  gradually  to  create  euro  area-only  constituencies  at  the 
IMF.  Work  to  this  effect  should  commence  as  soon  as  possible.  Such  a  move  would 
strengthen the voice and the effectiveness of the euro area in the Executive Board. It would 
also help the euro area become a key actor in shaping IMF policies and strategies.  

There is often more common interest at the IMF among Member States and euro area Member 
States than with other IMF member countries. At the same time, the Union has established a 
number  of  very  close  ties  with  Union  candidate  and  neighbourhood  countries  which  share 
common  interests.  These  ties  should  be  kept  in  the  context  of  a  rearrangement  of  IMF 
constituencies. 

The  Council  should  agree  on  a  common  framework  with  principles  for  a  path  for  the 
regrouping of the Union and euro area countries in the IMF to allow for closer cooperation:  

1) In 2010, advanced European countries committed to reduce their representation in the IMF 
Executive  Board  by  two  seats  at  the  latest  by  the  time  of  the  first  IMF  Executive  Board 
election after the 2010 quota reform takes effect. A large part of this commitment has already 

7 

 
 
been fulfilled. Member States should deliver the remaining changes in a way that is consistent 
with the aim of regrouping Member States into euro area constituencies and to strengthen the 
coherence of representation. 

2) Once the 2010 reform is ratified, the constituencies of the two large Member States that at 
the moment still have single chairs - France and Germany - could open up their constituencies 
to other European countries with appropriate involvement in their governance.  

3) Several Union and euro area Member States at the moment are grouped together with third 
countries that often have fundamentally different interests. Those Member States should aim 
to move into constituencies of Member States only.  

4)  Euro  area  Member  States  should  regroup  into  fewer  euro  area  only  constituencies.  In 
addition,  all  Member  States  should  in  the  medium  term  try  to  move  into  common 
constituencies, including – if possible - candidate and neighbouring countries.  

5) The last step should be that euro area Member States would move together into one single 
constituency, as set out in Section 3 below.  

Member  States  should  agree  to  discuss  in  the  Council  progress  made  towards  greater 
coherence  of  the  representation  of  the  euro  area  in  the  Fund,  ahead  of  each  election  of  the 
IMF  Executive  Board,  i.e.  every  two  years.  Future  changes  in  constituency  arrangements 
should be carried out in a way so as to increase the coherence of the representation of the euro 
area.  

3) Moving towards a unified representation for the euro area 

In addition to improved coordination and a rearrangement of constituencies, the Commission 
is presenting today a legal proposal to achieve a unified euro area representation in order to 
more effectively progress euro area interests in the IMF Executive Board. This is in line with 
the considerations in the Five President's report on a greater central steer by the Eurogroup in 
promoting and representing the interest of the euro area and a future euro area treasury. Once 
the necessary adjustments to the IMF governance are made, a single seat for the euro area in 
the IMF should therefore be established. The Commission proposes 2025 as a deadline for the 
establishment of a single seat. 

For  the  purpose  of  the  proposal  for  a  Council  decision  laying  down  measures  in  view  of 
establishing  a  unified  representation  for  the  euro  area  in  the  IMF  put  forward  together  with 
this  Communication,  the  Commission  proposes  a  model  whereby  Member  States  would 
remain  individual  IMF  members.  As  a  consequence,  among  other  things,  each  euro  area 
Member State will continue to be eligible for IMF borrowing. 

A single euro area seat would require (i) rules concerning the internal governance of the euro 
area constituency or constituencies; and (ii) a coordination mechanism to guide on positions 
to  be  taken  at  the  IMF  Executive  Board  on  behalf  of  the  euro  area.  This  could  rely  on 
upgraded structures in Brussels, including in the Eurogroup and the EWG.  

As a transitional arrangement, until achievement of a single  euro area seat, the Commission 
proposes  to  secure  an  observership  for  the  euro  area  in  the  Executive  Board.  An  observer 
status of the euro area represented in the Executive Board by the representative of a euro area 
Member State already member of the Board, supported by the Commission and the European 
Central Bank, would adequately reflect the role of the euro area in the global economy and the 
changes to  the  governance  of economic and financial  policy that have taken place since the 
crisis. It  would  allow  a euro  area  representative  to  officially  represent  the  euro  area  in  IMF 
Board meetings that discuss euro area policies, increase the euro area visibility and raise the 
international  profile  of  the  euro  area  as  an  important  global  player.  The  difference  between 
this representation for the euro area and the current arrangement is the specific mandate which 

8 

 
 
would be given to a single representative for the euro area when elected by the Eurogroup. At 
the moment, the EURIMF President represents the whole of the Union and is elected by the 
EU  Executive  Directors  in  Washington,  D.C.  This  step  would  be  accompanied  by  a  new 
agreement with the IMF on information sharing and consultation. 

REPRESENTATION  IN  OTHER  INTERNATIONAL  FORA,  IN  PARTICULAR  AS 

5. 
REGARDS ISSUES RELEVANT TO THE BANKING UNION 

As set out in section 2, although representatives of the Union and/or the euro area are present 
in fora other than the IMF, this has not always ensured that the euro area speaks with a single 
voice. Euro area interests are represented in a particularly effective manner when positions are 
well coordinated beforehand, but in practice that is not always the case. The Commission will 
therefore work towards further improving coordination in all international fora, particularly in 
areas where the EMU is being deepened further, for example as regards issues relevant to the 
Banking Union.  

The  Commission  will  work  with  Member  States  to  establish,  within  the  coming  months, 
enhanced  mechanisms  to  coordinate  positions  for  the  Financial  Stability  Board  and  as 
appropriate for other relevant standard-setting bodies, as regards the euro area and wherever 
possible, for the Union as a whole. These mechanisms could include, for example, a stronger 
commitment  to  respect  common  positions  established  in  the  relevant  EU  coordination  fora, 
regular  discussions  on  positions  and  coordination  issues  at  the  highest  level  within  the 
relevant  supervisory  or  political  decision-making  bodies,  both  ahead  of  and  after  key 
international meetings.  

6. 

CONCLUSIONS 

The external representation of the euro area needs to be strengthened to allow the euro area to 
play  a  more  active  and  singular  role  in  international  institutions  and  fora.  Building  on  the 
strengthening  of  the  internal  euro  area  governance  that  has  been  achieved,  this  would 
represent  an  important  step  towards  enhancing  the  weight  of  the  euro  area  in  the  global 
economy. It would give the euro area the opportunity to participate in designing the evolving 
rules of the international financial architecture, as well as contribute to the completion of the 
external dimension of Economic and Monetary Union. 

As  set  out  above,  this  communication  focuses  on  the  IMF  as  a  first  step  to  strengthen  the 
external representation of the euro area.  

To that end, the Commission invites the Council to adopt the decision laying down measures 
in view of establishing, by 2025 at the latest, a unified representation for the euro area in the 
IMF; reach a new agreement on the coordination of the euro area on IMF matters, including 
on  accountability  and  an  agreement  on  a  common  framework  that  would  regroup  euro  area 
constituencies  and  set  principles  to  deliver  on  the  two  seats  from  the  2010  IMF  quota  and 
governance  reform;  and  turn  the  SCIMF  into  a  fully-fledged  EFC  Sub-Committee  on  all 
International Financial Institutions in Brussels, including with a euro area only formation that 
would apply also to the EURIMF in Washington, D.C. 

The Commission will work towards further improving coordination in all international fora. It 
will look, in particular, at areas where the EMU is being deepened further. The Commission 
will work with Member States to establish, within the coming months, enhanced mechanisms 
to coordinate positions for the Financial Stability Board and as appropriate for other relevant 
standard-setting  bodies,  as  regards  the  euro  area  and  wherever  possible,  for  the  Union  as  a 
whole.  

9 

 
 
 
 
In  order  to  monitor  the  progress  made  and  identify  the  need  for  further  improvements,  the 
Commission  will  regularly  report  to  the  European  Parliament  and  the  Council.  The 
Commission will also take stock of the situation in this area when presenting its White Paper 
ahead of Stage 2 of the completion of the EMU in Spring 2017, as foreseen in the Report of 
the Five Presidents. 

10 

 
 
 
 
Table  1:  Overview  of  Union  and  euro  area  representation  in  relevant 
International Financial Institutions 

Institution  Current Union status 

IMF 

G7 

G20 

FSB 

OECD 

World 
Bank 

BIS 

EBRD 

The Union does not have a formal status in the IMF.  The Commission has 
observer  status  in  the  International  Monetary  and  Financial  Committee 
(IMFC), but not in the IMF Executive Board. The ECB has observer status 
in both the IMFC and the Board. 
At the Leaders level, the Union is jointly represented by the President of the 
Commission  and  the  President  of  the  European  Council.  For  G7  Finance 
Ministers' meetings, the Union is represented by the Commission, the ECB, 
and the Eurogroup President. 
The Union is a full member of the G20. At the Leaders level, the Union is 
jointly represented by the President of the Commission and the President of 
the  European  Council.  For  Finance  Ministers'  meetings,  the  Union  is 
represented by the Commission, the Council Presidency, and the ECB. 
The  Union  is  a  full  member  of  the  Financial  Stability  Board.  Other  FSB 
members  include  G20  countries  plus  a  number  of  other  important 
economies and international organisations. 
The  Union  has  a  specific  status  at  the  OECD  which  is  defined  by  the 
Supplementary  Protocol  No  1  to  the  Convention  of  the  OECD  and 
interpreted by an opinion of the OECD Legal Service. The Union enjoys the 
same  prerogatives  as  members,  with  two  exceptions:  The  Union  does  not 
have  the  right  to  vote  and  does  not  make  a  statutory  contribution  to  the 
OECD  budget.  The  Union  is  a  full  member  of  a  number  of  OECD 
committees, most notably the Development Assistance Committee (DAC). 
The Union as such is not represented on the Executive Board of the World 
Bank. The Commission has observer status in the Development Committee 
(i.e. Ministerial level). 
The  ECB  has  a  full  seat  in  the  Bank  for  International  Settlements.  BIS 
membership is restricted to central banks. 
EBRD membership comprises 64 governments, the Union and the European 
Investment Bank (EIB). The Union as such is a shareholder (3.05% of the 
total vote) in the Bank. 

11