The emerging governance of the euro area: the ESM and the new Treaty

The euro area faces unprecedented challenges and is overhauling its overall governance structure. This will have profound implications for the euro area economy.

At this Bruegel workshop, we will seek to achieve a deeper understanding of the advantages, disadvantages and challenges of the currently pursued strategy to prevent and manage the current and future crises. The core of the current strategy is the European Stability Mechanism, which can provide financial assistance to euro area Member States in need, but also foresees collective action clauses to involve private lenders in any rescue operation. The ESM is based on an intergovernmental treaty that still needs to be ratified and will create a new Fund outside the structures of the current EU. This will have significant implications for the governance arrangements of the euro area.

The workshop will discuss first the ESM, then more specifically collective action clauses and private sector involvement and finally the emerging governance framework, in particular crisis management and resolution. It will provide visions on further steps needed to put the euro on sound footing.

Draft agenda

(Downloadable version here)

12:45-13:15 Lunch Buffet

13.15-14.15: Session 1: The ESM Treaty and the new Treaty: main elements

Chair: Guntram Wolff (Bruegel)

• Maarten Verwey (European Commission)
• Klaus-Albert Bauer (Freshfields)

14.15-15.15: Session 2: Crisis resolution in the ESM: mixture of CACs and ESDRM?

Chair: Anna Gelpern (American University Washington)

• Sean Hagan (General Counsel, IMF)
• Mitu Gulati (Duke)

15.15-15.45 Coffee break

15.45-17.15: Session 3: Crisis management from EFSF to ESM

Chair: Zsolt Darvas (Bruegel)

• André Sapir (Bruegel)
• Frank Moss (ECB)
• Rolf Strauch (EFSF)

17.15-18.45: Session 4: The ESM and the new treaty: supplement or complement to current institutions?

Chair: Jean Pisani-Ferry (Bruegel)

• Maarten Verwey (European Commission)
• Odile Renaud-Basso (European Council)
• Sylvie Goulard (MEP)
• Helmut Siekmann (University of Frankfurt)

18.45: End