Capitals’ Power Grab for Eurozone Enforcer

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EU governments intend to build an elite agency to fight the next economic crisis, but they want to shove the European Commission and Parliament to the sidelines, POLITICO reported. Europe’s policymakers agree on the need to upgrade the eurozone’s bailout arm — the European Stability Mechanism (ESM) — into a powerful new European Monetary Fund (EMF). The Council of the EU, however, is trying to use a backdoor procedure to set up the EMF without resorting to the usual EU legislative process, six EU diplomats told POLITICO. Even countries outside the EU’s single currency bloc are happy to go along with this strategy (all EU members, except Denmark and the U.K., are obligated to eventually adopt the euro). If governments share control with MEPs and Eurocrats, finance ministers fear the work of the eventual EMF would get far too political to function properly, one non-eurozone Council official said. “We don’t trust the Commission to enforce rule-based frameworks,” the official said. Read more.