The conservatives parties (CDU, CSU) which will certainly win the Parliament vote end of September in Germany defend the idea of a European Monetary Fund in order to answer to the louder request for reform in the Eurozone. I personally do not think this would address the point.
Let us first understand where this idea is coming from and remember the very tough German position during the Euro-crisis toward anybody willing to see the Eurozone tackling her problems alone without the money and the expertise of the IMF. Germany’s position has always been that the European administration had no skills and no competency to handle the macroeconomic crisis opened by the euro-crisis. Germany refused to listen to those insisting for more European political ownership and responsibility, and trusted Europe so little, that she didn’t want to move without the IMF. And imposed her views.
The EMF would be then a European substitute of the IMF. It should be a macroeconomic stabilisation mechanism for the euro area, where stabilisation and convergence investments would be given to those respecting the rules. And making sure that no transfer union is created. The EMF would be a pure administrative mechanism, not a political union. It could be easily set on the basis of the current ESM (European Stabilisation Mechanism) and get its own budget, possibly its own debt-issuing capacity, in order to finance its stabilisation or convergence programs. For Germany it would be the ideal instrument to fairly manage the conditionality of any future help.
And all this would certainly represent an interesting technical step forward, but it would in my view totally miss the current point if it remains a purely interstate technical instrument. It would only worsen this black box feeling which is now so much rejected by people in Europe.
The European people is, and are, fed up with this non transparent, non democratic Europe, managed by Heads of States and Governments behind close doors, a bit like the Great Princes Electors used to rule the Holly Roman Empire of the German Nation. This lack of political transparency, democratic accountability and control lies at the core of the European crisis, from the Brexit to the rise of anti-European populist movements.
Yes we need new and improved technical bricks in order to further build our European house, but any new brick should be now clearly integrated into a true democratic European political architecture, or will be rejected what ever its merits are.
It is way time for our Princes Electors to understand that We Are Europe. It is way time for the European project to stop discrediting itself by insulting its core values and to finally become truly democratic. The mechanism envisaged for the EMF is far from being stupid, but has to be headed by somebody democratically appointed and democratically controlled. This one could be for instance the deputy-spitzencandidate leading the winning list in the Euro area of the next European Parliament Vote, and any of her/his decision should be thoroughly sanctioned and monitored by the € Members of the European Parliament. And this democratic governance should be so strong, that the name of EMF would suddenly appear inappropriate, and changed to something more ambitious, like the € Political Union.