Committee on Economic and Monetary Affairs (ECON)

Committee on Economic and Monetary Affairs (ECON)
Name	Committee on Economic and Monetary Affairs
Legislature	European Parliament
Formation	1953
Jurisdiction	European Union
Chairperson	TBD
Members	67

Committee on Economic and Monetary Affairs (ECON) The Committee on Economic and Monetary Affairs is a standing committee of the European Parliament responsible for legislative and oversight work in areas related to finance, taxation, and monetary policy. It acts at the crossroads of institutions such as the European Central Bank, European Commission, and Council of the European Union, interfacing with entities like the European Investment Bank and international organizations including the International Monetary Fund and Organisation for Economic Co-operation and Development.

History

The committee traces roots to post‑war parliamentary bodies that preceded the modern European Community and evolved alongside milestones such as the Treaty of Rome, the Single European Act, and the Maastricht Treaty. Throughout the 1990s and 2000s its agenda expanded in response to events like the European sovereign debt crisis, the creation of the Economic and Monetary Union of the European Union, and the establishment of the Eurozone. Key episodes shaping the committee’s remit include regulatory responses to the 2008 financial crisis, coordination linked to the European Stability Mechanism, and reforms following the Lehman Brothers collapse and the Basel III negotiations. The committee’s institutional interactions intensified with successive European Commission presidencies, including those of Jacques Delors, José Manuel Barroso, Jean-Claude Juncker, Ursula von der Leyen, and Manfred Weber-era alignments in the Parliament.

Mandate and Functions

The committee oversees legislative dossiers touching the European Central Bank’s mandate, the Economic and Monetary Union of the European Union governance, and financial services regulation emanating from the European Commission’s proposals. It exercises supervisory and budgetary scrutiny related to institutions such as the European Investment Bank and national authorities cooperating under frameworks like the Single Supervisory Mechanism. The ECON committee prepares reports, amendments, and opinions on files involving directives and regulations linked to frameworks negotiated at Eurogroup meetings, Council of the European Union configurations, and trilogue consultations with the European Commission and Council of the European Union. It holds hearings with figures from institutions including the European Banking Authority, European Securities and Markets Authority, and independent central bankers from national central banks such as Deutsche Bundesbank and Banque de France.

Membership and Leadership

Membership traditionally includes Members of the European Parliament affiliated with groups like the European People’s Party, Progressive Alliance of Socialists and Democrats, Renew Europe, Identity and Democracy, Greens–European Free Alliance, and European Conservatives and Reformists. Chairs and vice‑chairs have included prominent MEPs who coordinate rapporteurships on dossiers tied to the European Commission’s work programme and to trilogue mandates shaped by leaders during plenary sessions under presidents like António Costa (as national leader interactions) and Commission commissioners such as Margrethe Vestager and Valdis Dombrovskis. The committee appoints rapporteurs, shadow rapporteurs, and coordinators to shepherd legislative files through committee votes, plenary debates, and interinstitutional negotiations.

Legislative Work and Policy Areas

ECON’s legislative portfolio covers markets regulation influenced by international standards like Basel III, capital markets union proposals interacting with directives on MiFID II and MiFIR, banking union measures including the Single Resolution Mechanism, and anti‑money‑laundering frameworks linked to the Fifth Anti-Money Laundering Directive. The committee addresses taxation issues touching on proposals related to the Common Consolidated Corporate Tax Base, digital taxation debates involving OECD‑led initiatives like the Pillar One and Pillar Two frameworks, and measures on financial reporting referencing standards from bodies such as the International Accounting Standards Board. ECON also examines consumer protection instruments aligned with rulings from the Court of Justice of the European Union and enforcement cooperation with agencies including Eurojust and Europol in financial crime cases.

Relations with EU Institutions and Stakeholders

The committee maintains formal and informal links with the European Commission’s services, notably the Directorate-General for Financial Stability, Financial Services and Capital Markets Union and the Directorate-General for Economic and Financial Affairs. It summons representatives from the European Central Bank, commissioners like Pierre Moscovici and Thierry Breton, and officials from the European Systemic Risk Board for hearings. ECON engages stakeholders including industry associations such as the European Banking Federation, investor groups like the European Fund and Asset Management Association, trade unions such as the European Trade Union Confederation, consumer organizations including BEUC, and civil society actors that participated in consultations alongside multinational firms like Deutsche Bank, BNP Paribas, Santander, and tech firms active in digital finance debates.

Notable Reports and Initiatives

Noteworthy outputs include rapporteurships and committee reports on the Banking Union legislation, the Capital Markets Union action plan, post‑2008 regulatory packages leading to strengthened capital and liquidity standards, and proposals on sustainable finance integrating taxonomy criteria discussed with actors like Mark Carney and institutions such as the European Investment Fund. The committee advanced initiatives on market transparency under MiFID II, reforms to benchmark regulation following the LIBOR scandal, and legislative responses to crises including measures adopted during the COVID-19 pandemic to stabilize markets and support recovery through tools coordinated with the European Stability Mechanism and the NextGenerationEU recovery instrument.

Category:European Parliament committees