LEGAL PROBLEMS RELATED TO THE STRONG DE FACTO ROLE OF THE EUROGROUP

The strong position of the Eurogroup, which goes beyond a simple sketch of a “European Economic Government”, gives rise not only to significant accountability but also leads to legal problems. The European Court of Justice decided in case C-27/04, Commission v Council ([2004] ECR I-6649) that the economic governance procedures explicitly foreseen by the Treaties cannot be undermined: "It follows from the wording and the broad logic of the system established by the Treaty that the Council cannot break free from the rules laid down by Article 104 EC [today’s Article 126 TFEU] and those which it set for itself in Regulation No 1467/97. Thus, it cannot have recourse to an alternative procedure, for example in order to adopt a measure which would not be the very decision envisaged at a given stage or which would be adopted in conditions different from those required by the applicable provisions”. (ECJ, Case C-24/04, Commission v Council [2004] ECR I-6649 para 81). This refers in particular to the exclusion of non-Eurozone Member States in the deliberations concerning decisions under the multilateral surveillance and the budget control procedure. A simple rubberstamp function of the ECOFIN Council for decisions that were prepared in the Eurogroup would certainly infringe the Treaties. Primary law provides for a right of non-Eurozone Member States to also present their views on Eurozone matters in the Council and, by that, to control the Eurozone Member States, which have the exclusive voting rights in Eurozone matters.

The Treaty considers the Council as the core decision-making institution in the economic governance of the Union. The Council covers all 28 EU Member States. The Treaty only restricts the voting rights to the Eurozone Member States. The non-Eurozone Member States are not excluded from taking part in the Council meetings on Eurozone affairs and from raising their voices therein. By both elements the Treaties make clear that the control of Eurozone activities is a task of the Union as a whole. Against this background, a genuine democratic accountability of whatsoever kind of “European Economic Government” for the Eurozone requires a democratic control by a Parliamentary body of the entire Union, which is the European Parliament.