Committee on Economic and Monetary Affairs

Committee on Economic and Monetary Affairs
Name	Committee on Economic and Monetary Affairs
Abbreviation	ECON
Established	1958
Chair	Irene Tinagli
Vice chairs	Jonás Fernández, Ondřej Kovařík, Eero Heinäluoma
Political groups	European People's Party, Progressive Alliance of Socialists and Democrats, Renew Europe, The Greens–European Free Alliance, European Conservatives and Reformists, Identity and Democracy, The Left in the European Parliament
Associated committees	Committee on Budgets, Committee on Employment and Social Affairs
Website	https://www.europarl.europa.eu/committees/en/econ/home

Committee on Economic and Monetary Affairs. It is a key committee within the European Parliament responsible for overseeing the European Union's economic governance, financial services, and monetary policy. The committee plays a central role in shaping legislation related to the euro, banking union, and capital markets. Its work directly impacts institutions like the European Central Bank and the European System of Financial Supervision.

History and establishment

The committee's origins trace back to the founding treaties of the European Communities, particularly the Treaty of Rome which established the European Economic Community. Its formal structure evolved alongside the development of Economic and Monetary Union of the European Union, gaining significant powers with the Maastricht Treaty that created the European Union and laid the groundwork for the euro. Major milestones in its history include overseeing the introduction of euro banknotes and coins and responding to financial crises like the European debt crisis. The committee's mandate was further solidified by reforms following the Great Recession and the establishment of the European Banking Authority.

Role and responsibilities

The committee exercises legislative and oversight powers over European Union policies concerning economic and monetary affairs. Its core responsibilities include scrutinizing the activities of the European Central Bank, including the President of the European Central Bank who appears before it quarterly. It co-legislates on financial services legislation, such as regulations for MiFID II and the Capital Requirements Directive. The committee also monitors the economic policies of member states, contributes to the European Semester, and plays a key role in the appointment processes for the Executive Board of the European Central Bank and the Single Supervisory Mechanism.

Membership and composition

The committee is composed of Members of the European Parliament appointed by political groups, reflecting the composition of the European Parliament itself. Its membership includes a chair, several vice-chairs, and a coordinator from each major political group, such as the European People's Party and the Progressive Alliance of Socialists and Democrats. Notable former chairs include Roberto Gualtieri and Sharon Bowles. The current chair is Irene Tinagli, with rapporteurs like Markus Ferber and Jonás Fernández often leading on major legislative files.

Key activities and legislative work

A primary focus is the ongoing development of the Banking Union and the Capital Markets Union, including legislation on crisis management and deposit insurance. The committee drafts reports and amendments on significant acts like the Markets in Crypto-Assets Regulation and the Digital Operational Resilience Act. It conducts regular economic dialogues with commissioners from the European Commission, such as the Commissioner for Economy, and leaders of the Eurogroup. Recent inquiries have addressed topics ranging from the COVID-19 pandemic recovery funds to the financial stability implications of the Russian invasion of Ukraine.

Subcommittees and related bodies

The committee does not have permanent subcommittees but frequently establishes temporary working groups and task forces for specific issues. It maintains a close working relationship with the Committee on Budgets, particularly on matters concerning the European Stability Mechanism and the Next Generation EU fund. It also collaborates with the Committee on Employment and Social Affairs on the social dimension of economic governance. Furthermore, it interacts with specialized bodies like the European Court of Auditors and the European Supervisory Authorities.

Influence and impact

The committee exerts substantial influence on the European Union's financial regulatory landscape, with its opinions shaping final legislation negotiated with the Council of the European Union. Its scrutiny hearings, such as those for the Chair of the Single Resolution Board, enhance transparency and accountability within the Eurosystem. The committee's work during the European sovereign debt crisis was instrumental in designing the Single Resolution Mechanism. Its ongoing oversight of the European Central Bank's monetary policy decisions directly affects the economic trajectory of the eurozone and its citizens.

Category:European Parliament committees Category:Economic and Monetary Union of the European Union