COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL AND THE EUROPEAN CENTRAL BANK A EUROPEAN MINISTER OF ECONOMY AND FINANCE
Date: 2017-12-06
Institutions: European Commission, Secretariat-General
Subjects: Economic and Monetary Union, Euro Group (euro area), administrative structures, economic and social cohesion, minister, operation of the Institutions

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 6.12.2017 COM(2017) 823 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL AND  THE EUROPEAN CENTRAL BANK A EUROPEAN MINISTER OF ECONOMY AND FINANCE  
 
 
1.  INTRODUCTION 

In  his  2017  State  of  the  Union  address  and  accompanying  Letter  of  Intent,  President  Juncker 
mentioned  the  possible  creation  of  the  post  of  a  European  Minister  of  Economy  and  Finance.1  
In his words, “the Commissioner for economic and financial affairs – ideally also a Vice-President – 
should  assume  the  role  of  Economy  and  Finance  Minister.  He  or  she  should  also  preside  the 
Eurogroup.” This Communication follows up on that announcement. It builds on the debate shaped by 
the Reflection Paper on the deepening of the Economic and Monetary Union2 and develops a practical 
way  forward.  It  also  builds  on  the  ideas  of  the  Five  Presidents’  Report,3  ideas  expressed  by  the 
European  Parliament4  and  those  of  the  Euro  Summit  in  October  2011,  where  Heads  of  State  and 
Government already discussed the possibility of a full-time Eurogroup President.5  

The  current  architecture  of  the  Economic  and  Monetary  Union  is  intrinsically  complex. 
Compared to monetary policy, which is unified for euro area Member States and easily identified by 
citizens, economic policy is essentially managed by individual Member States and coordination efforts 
at  EU  and  euro  area  level  are  conducted  by  many  actors.  The  relevant  institutions  have  evolved 
incrementally  over  time  and  combine  EU  institutions  and  some  intergovernmental  bodies.  
These  bodies  have  their  own  chairpersons  or  Presidents,  have  developed  their  own  accountability 
systems  and  work  under  various  and  sometimes  overlapping  legal  frameworks.  This  has  led  to 
complex  decision-making  processes,  which  have  often  been  criticised  for  not  being  sufficiently 
understandable  and  efficient.  It  also  means  that  EU  policies  and  instruments  require  a  lot  of 
coordination between actors to be applied in a fully coherent way.  

As  highlighted  in  the  Five  Presidents’  Report,  effective  governance  and  further  strengthening 
democratic  accountability  are  essential  parts  towards  completing  the  Economic  and  Monetary 
Union.  The  creation  of  a  European  Minister  of  Economy  and  Finance  would  be  a  further  important 
step in this direction. By combining existing functions at EU level and bringing together closely linked 
policy  instruments,  the  Minister  would  help  to  create  new  synergies  and  thus  improve  the  overall 
coherence and effectiveness of EU economic policy-making. Acting within the EU legal framework, 
the  Minister  would  also  contribute  to  strengthening  the  transparency  of  EU  policy-making,  
accountability towards the European Parliament and the interaction with national authorities, without 
impinging on national competences or on matters best dealt with at national level. 

The  Commission  has  in  recent  years  gradually  elevated  the  coordination  of  economic  matters 
within  the  College.  Under  the  Juncker  Commission,  the  role  of  the  Vice-Presidents,  including  on 
matters  dealing  with  the  euro,  the  European  Semester  of  economic  policy  coordination  and  social 
dialogue,  has  been  further  strengthened  to  play  even  more  of  a  coordinating  function.  This  allows  
a  holistic  vision  of  a  wide  range  of  topics  related  to  several  policy  portfolios  and  their  respective 
services. 

1   President Jean-Claude Juncker’s State of the Union Address 2017, 13 September 2017. 
2   COM(2017) 291, 31 May 2017. 
3   Completing Europe’s Economic and Monetary Union, Report by Jean-Claude Juncker, in close cooperation 

with Donald Tusk, Jeroen Dijsselbloem, Mario Draghi and Martin Schulz, 22 June 2015. 

4   In its resolution of 16 February 2017 on possible evolutions of and adjustments to the current institutional 
set-up of the European Union, the European Parliament called for “an executive authority [of the Union] to 
be concentrated in the Commission in the role of an EU Finance Minister”. 

5   During the Euro Summit on 26 October 2011, Heads of State or Government of the Euro Area agreed on ten 
measures  to  improve  the  governance  of  the  euro  area,  where  it  was  agreed  that  a  decision  on  whether  the 
President of the Eurogroup “should be elected among Members of the Eurogroup or be a full-time President 
based in Brussels will be taken at the time of the expiry of the mandate of the current incumbent”. 

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The current governance of the Economic and Monetary Union is complex 

Source: European Commission 

With  this  Communication,  the  Commission  sets  out  how  a  future  European  Minister  of 
Economy  and  Finance  could  play  a  role  in  the  governance  architecture  of  the  Economic  and 
Monetary Union. In so doing, the Communication details the key functions of a European Minister of 
Economy and Finance, outlines the institutional setting in which the Minister would operate and sets 
out  a  potential  timeline  for  the  setting  up  of  this  new  position.  In  particular,  the  Communication 
describes  the  added  value  of  an  ultimate  merger  of  the  function  of  Commission  Vice-President  in 
charge of the Economic and Monetary Union with that of President of the Eurogroup, and it highlights 
that this could already be achieved under the existing Union Treaties.    

Possible responsibilities of the European Minister of Economy and Finance in a steady state 

Source: European Commission 

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2.  FUNCTIONS  OF  A  EUROPEAN  MINISTER  OF  ECONOMY  AND  FINANCE: 

ENSURING COHERENCE AND EFFICIENCY 

The possible key functions of a European Minister of Economy and Finance in their final state are set 
out  below.  Bringing  together  these  functions  would  help  strengthen  the  overall  coherence  and 
efficiency of EU economic policy-making.  

Pursuing the general interest of the EU and euro area economy and representing it at global level 

Today, the common interest of the EU and the euro area is still not sufficiently represented in 
the public debate and decision-making across Europe. While monetary policy is centralised at euro 
area  level,  budgetary,  tax  and  sectoral  policies  are  all  decentralised,  reflecting  national  competences 
and circumstances, without spontaneously or necessarily reflecting shared priorities. The issuance of a 
recommendation  on  the  economic  policy  of  the  euro  area  as  part  of  the  European  Semester  has 
improved the coordination of euro area policies in recent years. However, its implementation relies on 
the Member States’ collective willingness and the coordination of policies requires constant steer and 
monitoring at EU level.  

At  the  same  time,  the  euro  has  established  itself  as  a  leading  world  currency,  but  its  global 
representation is still very much fragmented. Since its launch, the euro has become the second most 
used  currency  around  the  world.  However,  in  international  financial  institutions,  such  as  the 
International Monetary Fund, the euro area is not represented as a single entity. The external economic 
representation of the EU and of the euro area is currently divided, with different roles assigned to the 
Commission,  the  European  Central  Bank,  the  President  of  the  Eurogroup  and  the  EU  Council 
Presidency.  This  fragmented  representation  often  means  that  the  euro  area  punches  well  below  its 
political and economic weight across the world. 

A European Minister of Economy and Finance could help to promote better the general interest 
of the Union and the euro area economy, both internally and at global level. With the post of the 
Minister,  a  key  interlocutor  would  be  established  at  EU  level  in  the  areas  of  economic,  fiscal  and 
financial policies vis-à-vis the EU institutions and bodies, the Member States and the general public. 
The Minister would also naturally assume the function of external representation of the euro.6 

Strengthening policy coordination and overseeing economic, fiscal and financial rules 

Economic policy coordination in the EU has been significantly bolstered as a consequence of the 
economic  and  financial  crisis.  The  European  Semester  has  been  continuously  improved  to  foster 
reforms  and  their  implementation.  The  recently  created  Structural  Reform  Support  Service  of  the 
Commission  provides  technical  support  to  Member  States  to  help  them  with  these  efforts.  This  has 
been supported by further initiatives at EU level, including on tackling youth unemployment, the fight 
against tax evasion and recently, the proclamation of the European Pillar of Social Rights. The EU has 
also made decisive steps towards a Capital Markets Union and the completion of the Banking Union, 
which  need  to  be  continued.  However,  the  implementation  of  reforms  in  the  Member  States  is  still 
uneven. There are also missed opportunities in terms of improved coordination and learning from each 
other,  and  there  is  a  constant  need  to  align  national  and  EU  priorities  in  the  light  of  changing 
circumstances.  

6   See  also  COM(2015)  602  final  of  21  October  2015  on  a  roadmap  for  moving  towards  a  more  consistent 
external representation of the euro area in international fora and COM(2015) 603 final of 21 October 2015 on 
a Commission proposal for a Council Decision laying down measures in view of progressively establishing 
unified representation of the euro area in the International Monetary Fund. 

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A  European  Minister  of  Economy  and  Finance  could  help  further  strengthen  economic  policy 
coordination and ensure consistency across policy areas, building on the work already done by 
the  Commission  together  with  the  Member  States.  Working  in  close  bilateral  and  multilateral 
dialogue  with  national  authorities  and  the  European  Parliament,  the  Minister  could  promote  the 
coordination  and  implementation  of  reforms  in  the  Member  States.  As  structural  reforms  can  have 
positive spill-over effects, the Minister would also bring added value in looking at the optimal reform 
agenda for the EU and the euro area as a whole.7  

Pronouncing on the adequate fiscal policy for the euro area in support of the monetary policy of the 
European Central Bank 

Together  with  monetary  policy,  fiscal  policy  plays  a  key  role  in  stabilising  the  macroeconomic 
environment,  while  also  serving  the  broader  goals  of  fiscal  sustainability  and  redistribution.8  
The  Commission  regularly  provides  recommendations  to  the  Council  on  Member  States’  fiscal 
policies, taking into account the flexibility enshrined in the existing set of EU fiscal rules.9 In recent 
years, the Commission and the Council have also put a greater focus on the aggregate fiscal stance of 
the  euro  area,  considering  the  general  interest  of  and  collective  responsibility  for  the  euro  area  as  a 
whole.10 However, the successful implementation of an appropriate aggregate fiscal stance for the euro 
area requires the individual and collective willingness of the Member States to follow through. 

A European Minister of Economy and Finance could help in the identification and pursuit of an 
adequate fiscal policy for the euro area as a whole. As a member of the Commission, the Minister 
would coordinate the surveillance of Member States’ fiscal policies, ensuring fiscal sustainability and 
applying the Stability and Growth Pact with the economic reading that the rules foresee. Part of this 
task  would  also  be  to  assess  the  appropriateness  of  the  fiscal  stance  of  the  euro  area,  thereby 
contributing  to  finding  a  balance  between  the  fiscal  interests  of  the  Member  States  and  the  best 
solution  for  the  euro  area  as  a  whole.  Another  task  would  be  to  promote  the  quality  and  best 
composition  of  public  finances  and  the  functioning  of  national  fiscal  frameworks  with  a  view  to 
maximising their impact on jobs and growth. In so doing, the Minister would build on the views of the 
European Fiscal Board11 and be a key interlocutor for national fiscal councils. 

Overseeing  the  use  of  EU  and  euro  area  budgetary  instruments  including  instruments  in  support  of 
reforms, macroeconomic stabilisation and convergence 

The EU budget and other EU and euro area budgetary instruments already play a strategic role 
in supporting Member States to foster convergence, long-term growth, investment and financial 
stability.  About half of the EU funding is currently channelled to concrete projects through the five 
European  Structural  and  Investment  Funds.  The  link  between  these  funds  and  the  priorities  of  the 

7    COM(2017) 825 and COM(2017) 826 of 6 December 2017. 
8    Also the G20 Leaders’ declaration of 8 July 2017 underlined the need to use fiscal policy – next to monetary 
and structural policies – individually and collectively to achieve the goal of strong, sustainable, balanced and 
inclusive growth, while enhancing economic and financial resilience. 

9   COM(2015) 12 final, 13 January 2015. 
10   The  “fiscal  stance”  is  usually  understood  as  the  orientation  given  to  fiscal  policy  by  governments’ 
discretionary decisions on tax and expenditure. It determines the role that fiscal policy plays in the economic 
cycle. If well designed, notably in combination with reforms and support to investment as well as the help of 
a  future  fiscal  stabilisation  function,  a  more  active  fiscal  policy  can  contribute  to  a  faster  reduction  in 
unemployment in the short run, but also to lift the medium-term (potential) growth in the euro area. See also 
COM(2016) 727 final, 16 November 2016.  

11   The  board  is  an  independent  advisory  body  to  the  Commission  on  fiscal  matters  with  the  purpose  of 

achieving a more informed public debate and better coordination of national fiscal policies. 

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European Semester has been strengthened over the years with a view to supporting shared priorities. 
The actions supported by the EU budget are complemented by a number of European and euro area 
tools  and  bodies,  such  as  the  European  Investment  Bank  and  the  European  Stability  Mechanism. 
However, the crisis has shown that the architecture and scope of EU public finances do not yet fully 
capture the specific needs of the euro area. Whereas the EU and euro area have increased their lending 
firepower in recent years, the potential for macroeconomic stabilisation and supporting convergence is 
still  limited.12  Looking  forward,  the  Commission  proposes  today  a  number  of  new  budgetary 
instruments for a stable euro area within the Union framework.13  

The European Minister of Economy and Finance would coordinate the use of relevant EU and 
euro area budgetary instruments and maximise their impact in support of shared priorities. The 
Minister would endeavour to make sure that these instruments are used coherently and effectively and 
would constantly seek synergies in their implementation, in close cooperation with the Commissioners 
responsible  and  public  authorities  at  all  levels.  Coordinating  the  Commission’s  work  on  the 
Investment  Plan  for  Europe  would  be  a  particularly  important  task.14  In  that  function,  the  Minister 
would also be in charge of the Commission’s relations with the European Investment Bank.  

3.  INSTITUTIONAL  ASPECTS:  DEMOCRATIC  ACCOUNTABILITY  AND 

LEGITIMACY 

The  new  position  of  a  European  Minister  of  Economy  and  Finance  can  contribute  to  further 
streamlining  the  EU  governance  framework  and  strengthening  the  European  dimension  to 
economic  policy  making.  As  a  matter  of  fact,  the  envisaged  “double-hatting”  –  member  of  the 
Commission and President of the Eurogroup – is already possible within the current Treaties. Article 2 
of  Protocol  No  14  on  the  Eurogroup,  annexed  to  the  Treaties,  mentions  that  “the  Ministers  of  the 
Member  States  whose  currency  is  the  euro  shall  elect  a  president  for  two  and  a  half  years,  by  a 
majority of those Member States.”15 The Minister would not create a new supranational bureaucratic 
layer, nor would the Minister impinge on national competences. By combining existing functions and 
available expertise at EU level, the Minister would help create synergies and thus contribute to a more 
efficient governance framework.   

The Minister as Vice-President of the Commission 

Given the Commission’s institutional role as promoter of the general interest, a Vice-President 
of  the  Commission  could  take  over  the  role  as  European  Minister  of  Economy  and  Finance.  
This  would  allow  for  the  creation  of  a  visibly  mandated  and  unified  representative  of  the  economic 
and fiscal interests of the whole EU and the euro area, which also serves as a key point of reference 
inside and outside the Commission.  

12   See also Commission Reflection Paper on EU public finances, COM(2017) 358, 28 June 2017. 
13   COM(2017) 822 of 6 December 2017. 
14   The  Investment  Plan  for  Europe  was  launched  by  the  Commission  together  with  the  European  Investment 
Bank with a view to stimulating private investment in the EU economy and to tackling investment barriers, 
and significant first results have been achieved with EUR 251 billion of investments mobilised so far. 

15   Eurogroup  ministers  would  only  need  to  change  their  working  methods,  which  are  agreed  informally,  
by simple majority. These working methods currently foresee that candidates for the office of President must 
hold the position of national minister of finance. 

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The Minister could steer and coordinate the work of several policy portfolios and services across 
the  Commission.  He/she  would  represent  the  Commission  in  the  meetings  of  the  European  Central 
Bank’s Governing Council, without the right to vote, as it is foreseen in Article 284(1) of the Treaty 
on  the  Functioning  of  the  European  Union.  He/she  would  also  be  responsible  for  EU-level  social 
dialogue and interaction with key stakeholders.  

The Minister as Chair of the Eurogroup 

The European Minister of Economy and Finance could be elected as President of the Eurogroup, 
with a view to taking into account the interests of the euro area as a whole. The Eurogroup has 
until  now  been  chaired  by  a  finance  minister  of  a  euro  area  Member  State.  As  President  of  the 
Eurogroup,  the  Minister  would  present  and  seek  consensus  on  the  broad  policy  direction  and  the 
overall  strategy  for  the  euro  area,  by  helping  to  balance  and  align  the  points  of  views  of  national 
ministers with the shared priorities pursued at euro area and EU level. The Minister would also ensure 
the coherent preparation of Euro Summit meetings. 

The role of the Eurogroup and its President over time 

The  Eurogroup  is  an  informal  body  where  the  finance  ministers  of  the  euro  area  Member  States 
discuss matters under their shared responsibilities related to the euro. Its main task is to ensure close 
coordination  of  economic  policies  among  euro  area  Member  States,  in  full  respect  of  the  powers 
attributed to the Council under Article 121 TFEU.  

The  European  Council  endorsed  the  creation  of  the  Eurogroup  on  13  December  1997.16  In  a 
resolution on economic policy coordination, the Council concluded that “the Ministers of the States 
participating in the euro area may meet informally among themselves to discuss issues connected with 
their shared specific responsibilities for the single currency.” The Eurogroup held its first meeting on 
4 June 1998. In its early years, the Eurogroup was chaired by the rotating Council Presidency, except 
where the Council Presidency was held by a non-euro area Member State, in which case the chair was 
held by the next euro area country that would hold the Council Presidency.  

On 10 September 2004, the Eurogroup decided to have a permanent President, appointed for a period 
of  two  years.  At  an  informal  ECOFIN  meeting  in  Scheveningen,  in  the  Netherlands,  Jean-Claude 
Juncker was elected as the first permanent President of the Eurogroup.  

Protocol  14  on  the  Eurogroup  entered  into  force  with  the  Lisbon  Treaty  on  1  December  2009.  
It  stipulates  that  Ministers  of  Member  States  whose  currency  is  the  euro  shall  meet  informally  to 
discuss  matters  related  to  the  specific  responsibilities  they  share  with  regard  to  the  single  currency 
and shall elect a President for two and a half years by a simple majority of votes.  

Since October 2008, regular meetings of the euro area Heads of State or Government had taken place. 
At  their  meeting  on  26  October  2011,  Heads  of  State  or  Government  agreed  that  a  decision  on 
whether  the  President  of  the  Eurogroup  is  to  be  elected  “among  its  members  or  be  a  full-time 
President  based  in  Brussels  will  be  taken  at  the  time  of  the  expiry  of  the  mandate  of  the  current 
incumbent.”  It  was  also  agreed  that  the  Eurogroup  Working  Group  would  prepare  Eurogroup 
meetings, drawing on the expertise provided by the Commission. It was furthermore clarified that the 
Eurogroup  Working  Group  would  be  chaired  by  a  full-time  Brussels-based  President  elected,  
in principle, at the same time as the chair of the Economic and Financial Committee, for a period of 
two years, which may be extended. 17  

16   European Council, Presidency conclusions, Luxembourg, 12-13 December 1997.  
17   In  May  2013,  France  and  Germany  also  presented  their  joint  paper  “Together  for  a  stronger  Europe  of 
Stability  and Growth”. It  proposed  to  strengthen  the governance  of  the  euro  area  “after  the  next  European 
elections. […] This could include:[…] a full-time President for the Eurogroup”. 

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The Eurogroup could agree to elect the Minister as its President for the whole duration of the 
Commission’s  mandate.  This  would  be  compatible  with  the  Minister’s  duties  as  a  member  of  the 
Commission, representing the general interest, and would not require a Treaty revision.18 

The  European  Minister  would  be  supported  in  the  preparation  of  Eurogroup  meetings  by  
the  permanent  Chairman  of  the  Economic  and  Financial  Committee/Eurogroup  Working 
Group and a Secretariat building on all available expertise, making sure that no additional structures 
are created or duplicated.19 

The Minister overseeing the work of the European Monetary Fund 

The  President  of  the  Eurogroup  currently  chairs  the  Board  of  Governors  of  the  European 
Stability Mechanism. The latter was put in place during the crisis on an intergovernmental basis as a 
way  to  provide  support  to  those  Member  States  facing  financial  distress.  Building  on  the  European 
Stability Mechanism, the Commission proposes today to integrate the European Monetary Fund into 
the Union legal framework.20  

As  President  of  the  Eurogroup,  the  Minister  would  then  also  chair  the  Board  of  Governors  of 
the European  Monetary Fund. In so doing, the Minister would exercise a neutral role, taking  into 
account the interests of the shareholders of the European Monetary Fund in a balanced manner.  

Accountability towards the European Parliament  

The Commission is accountable towards the European Parliament. Members of the Commission 
also  actively  engage  with  the  European  Parliament  on  economic  and  fiscal  matters,  notably  through 
the Economic Dialogues set out in the “Six-Pack” and “Two-Pack” legislation.21 The Eurogroup and 
the European Stability Mechanism engage with the European Parliament on a voluntary basis.  

The Minister would be accountable towards the European Parliament on all issues related to its 
functions and would also be available for dialogues with national Parliaments.  As a member of 
the College of Commissioners, the Minister would be subject to a hearing by the European Parliament. 
After  a  vote  of  consent,  the  Minister  would  be  appointed  as  part  of  the  Commission  College.  
The  Minister  would  continue  to  have  regular  dialogues  with  the  European  Parliament  and  with 
national Parliaments. Furthermore, in line with the existing process for examining the Draft Budgetary 
Plans  of  euro  area  Member  States,  national  Parliaments  could  request  the  Minister  to  present  the 
Commission opinion on the respective Draft Budgetary Plan to them. 

18  The Commission participates in the work of the Eurogroup, as is foreseen in Protocol No 14 to the Treaties. 
Article 17(1) TEU lays down the mission of the Commission to promote the common interest of the Union, 
which  it  does  in  all  its  activities.  It  is  thus  Union  primary  law  that  makes  it  clear  that  there  is  no 
incompatibility  between  the  tasks  of  a  Member  of  the  Commission  and  involvement  in  the  work  of  the 
Eurogroup. 

19  The  work  of  the  Eurogroup  is  prepared  by  the  Eurogroup  Working  Group  (EWG).  The  EWG  and  
the Economic and Financial Committee (EFC) are chaired by a permanent chairperson since 2012. Hosted in  
the Council, the EFC/EWG Chair is assisted by a secretariat whose staff is mainly supplied by and based in 
the  Commission.  This  organisation  has  allowed  synergies  and  proven  to  be  efficient.  It  could  be  further 
developed with the creation of the European Minister for Economy and Finance.  

20   COM(2017) 827 of 6 December 2017. 
21   Regulations (EU) n° 1173/2011, 1174/2011, 1175/2011, 1176/2011, 1177/2011, 472/2013 and 473/2013. 

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4.  CONCLUSIONS 

The Commission considers that the position of a European Minister of Economy and Finance would 
be an important institutional step for a more coherent, effective and accountable economic governance 
of the European Union.  

It calls on the European Parliament and the Council, as well as on the Member States, to reflect on the 
ideas  expressed  in  this  Communication,  with  a  view  to  building  a  common  understanding  in  the 
context  of  the  discussion  on  the  deepening  of  the  Economic  and  Monetary  Union  foreseen  in  the 
Leader’s Agenda. 

Within the existing Treaties, such a position could be created sequentially, according to the following 
timeline:  
  The function of the Minister as Vice-President of the Commission could be established as part of 

the appointment of the next Commission as from November 2019. 

  The  Eurogroup  could  agree  to  elect  the  Minister  as  its  President  for  two  consecutive  mandates, 

thus agreeing on an alignment of its mandate with the mandate of the Commission.  

8