Committee on Economic and Monetary Affairs

Committee on Economic and Monetary Affairs
Name	Committee on Economic and Monetary Affairs
Type	Parliamentary committee
Formation	1979
Jurisdiction	European Parliament
Headquarters	Brussels
Membership	72
Parent organization	European Parliament

Committee on Economic and Monetary Affairs is a standing committee of the European Parliament responsible for financial legislation, monetary policy scrutiny, and regulatory oversight within the European Union. It engages with institutions such as the European Commission, the European Central Bank, and the European Court of Auditors while interacting with national authorities like the Bundesbank and the Banque de France. The committee shapes dossiers affecting markets, taxation, and public finance that touch on policies associated with the Maastricht Treaty, the Lisbon Treaty, and the Stability and Growth Pact.

History

The committee was established after the first direct elections to the European Parliament and evolved alongside milestones such as the Single European Act and the introduction of the euro. It played roles during the Maastricht Treaty negotiations, the creation of the European Monetary Institute, and the handover of responsibilities to the European Central Bank. During the Great Recession and the European sovereign debt crisis, the committee worked on measures linked to the European Stability Mechanism and the reform packages stemming from the Six-Pack and the Two-Pack. It has responded to cross-border crises including the 2008 financial crisis and the COVID-19 pandemic in the European Union, engaging with actors such as the International Monetary Fund, the World Bank, and the Organisation for Economic Co-operation and Development.

Remit and Responsibilities

The committee’s remit covers monetary policy coordination with the European Central Bank, legislative files on banking union elements tied to the Single Supervisory Mechanism and the Single Resolution Mechanism, and capital markets integration projects such as the Capital Markets Union. It drafts opinions and reports on directives and regulations proposed by the European Commission, and evaluates audit findings from the European Court of Auditors. The committee also monitors compliance with fiscal rules stemming from the Stability and Growth Pact and considers international commitments under agreements like the Basel III framework and standards set by the Financial Stability Board and the Bank for International Settlements.

Membership and Leadership

Membership comprises Members of the European Parliament from political groups including the European People's Party, the Progressive Alliance of Socialists and Democrats, Renew Europe, the Identity and Democracy Party, Greens–European Free Alliance, and the European Conservatives and Reformists Party. Chairs and vice-chairs have included prominent MEPs who coordinate with spokespeople from delegations such as the European Conservatives and Reformists Group and the European United Left–Nordic Green Left. The committee engages with national central banks like the Banco de España and supervisory authorities such as the Autorité de contrôle prudentiel et de résolution through hearings that include figures from Deutsche Bundesbank, Banca d'Italia, and the Netherlands Authority for the Financial Markets.

Legislative Role and Procedures

As a legislative committee, it prepares reports, proposes amendments, and leads interinstitutional negotiations in trilogues with the European Commission and the Council of the European Union. It handles files under the ordinary legislative procedure established by the Treaty on European Union and the Treaty on the Functioning of the European Union, producing opinions on draft acts related to banking, securities, and fiscal rules. The committee cooperates with other parliamentary committees such as the Committee on Internal Market and Consumer Protection, the Committee on Legal Affairs, and the Committee on Budgetary Control to coordinate positions on cross-cutting dossiers like the Markets in Financial Instruments Directive and the Anti-Money Laundering Directive. It uses delegated acts pursuant to powers derived from regulations like the Payment Services Directive and engages in consent procedures for international agreements exemplified by accords with the United States on financial data sharing.

Major Policy Areas and Initiatives

Key policy areas include banking union completion encompassing the European Banking Authority mandates, prudential standards aligned with the Basel Committee outputs, capital markets reforms under the Capital Markets Union initiative, sustainable finance regulations tied to the European Green Deal and the Sustainable Finance Disclosure Regulation, and anti-money laundering measures aligned with FATF recommendations. The committee has driven initiatives on fintech regulation such as the Markets in Crypto-Assets Regulation, the Payment Services Directive 2, and frameworks for digital finance that touch on actors like Visa, Mastercard, SWIFT, and ECB digital currency research. It has also addressed taxation issues connected to the OECD's Base Erosion and Profit Shifting project and EU proposals on the Digital Services Tax and a common consolidated corporate tax base.

Relations with EU Institutions and External Stakeholders

The committee maintains formal relations with the European Central Bank through monetary dialogues featuring the President of the European Central Bank and participates in hearings with the European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union. It liaises with the European Investment Bank on investment programs, cooperates with the European Securities and Markets Authority on supervisory convergence, and consults with the European Court of Auditors on budgetary oversight. External stakeholders include global bodies such as the International Monetary Fund, the World Bank Group, the Organisation for Economic Co-operation and Development, as well as national ministries like the Ministry of Finance (Germany), think tanks including the Bruegel and Centre for European Reform, industry associations such as the European Banking Federation and the European Fund and Asset Management Association, and trade unions exemplified by the European Trade Union Confederation.

Category:European Parliament committees