Eurozone finance ministers reached a preliminary agreement on a reform of the European Stability Mechanism in June, but failed to conclude it last week. The reform is now set to be discussed during the European Council meeting on 12-13 December. The authors argue that the proposal should not be endorsed in its current form. They argue it would represent a missed opportunity to secure a broader and more ambitious reform package.
At the December European Council, EU leaders will be asked to endorse a reform of the European Stability Mechanism (ESM). They should refuse to do so. Closing the ESM negotiations now would remove an important element from a better potential reform package. Indeed, the reform is highly imperfect and imbalanced, and the issue of euro area reform deserves a broader and more ambitious agenda. Continue reading