27th June 2015

EU´s five presidents propose euro area overhaul

On 22 June, the 5 EU presidents – Jean-Claude Juncker (EC), Martin Schulz (EP), Jeroen Dijsselbloem (Eurogroup), Donald Tusk (European Council) and Mario Draghi (ECB) presented their plan for next steps regarding eurozone´s architecture. The plan comes with three phases. During the first phase, from today until 2017, the EU bodies should be using existing procedures and measures to ensure better fiscal compliance and economic coordination in the eurozone. After 2017, new instruments should be introduced based on a Treaty change. In 2017 France and Germany will hold their most important elections. The changes include a common bank deposits insurance scheme and possibly a eurozone treasury. However, the euro area states would still be sovereign concerning their taxes and other policies. The eurozone as a whole should by then also strengthen its international presence – the plan discusses for example the possibility of a eurozone´s seat in the IMF. The first steps are to be taken as early as July 2015. Concerning the next stages, the Commission will present a White Book on EMU in 2017. The third stage, a completed and genuine economic and monetary union, should be accomplished no later than 2025.

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Members of the American Chamber of Commerce in the Czech Republic