EC and the European Stability Mechanism (ESM) are expected to sign a Memorandum of Understanding on the working relationship between the two institutions. The document—which will be officially signed by Vice-President Valdis Dombrovskis and Commissioner Pierre Moscovici on behalf of EC and ESM Managing Director Klaus Regling this afternoon—reflects the close cooperation of the two institutions and the important role that ESM has played over the years in providing financial assistance to member states to overcome acute crises and regain financial stability.
The Memorandum spells out the working methods between EC and ESM in the light of experience and in line with their respective roles and mandates. It does not change the rules and the legal framework under which they operate. The existing competences and responsibilities of both institutions, as enshrined in the EU law and the ESM Treaty, remain intact. The Memorandum of Understanding also sets out the principles of cooperation, working arrangements under ESM financial assistance programs and post-program surveillance, operational arrangements on exchanges of information and confidentiality, and matters regarding training programs and staff exchange.
The two institutions share the common objectives of safeguarding the stability of the euro area and ensuring the efficient governance of financial assistance programs in member states. The agreement will provide useful guidance for continued collaboration in future programs. The ESM Managing Director will meet at least twice a year with the Members of the Commission responsible for Financial Stability and Economic and Financial Affairs to discuss the working arrangements set out in the Memorandum.
Keywords: Europe, EU, Banking, Financial Stability, MoU, Financial Assistance, ESM, EC
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