ECB Decision-making and the Status of the Eurogroup in an Enlarged EMU

Abstract

This paper analyses the link between forthcoming EU enlargement and selected aspects of EU institutional reforms, namely decision making rules in the European Central Bank and the status of the Eurogroup. It argues that some earlier arguments calling for urgent ECB reform are based on unrealistic assumptions. It concludes that the reform recently adopted by the EU Council as well as the present system, while not free from shortcomings, could provide a workable environment for monetary policy in an enlarged EMU. Additionally, the paper claims that designing efficient institutional solutions for the EU Council is also important from the perspective of new member states as it might impact o their chances for early adoption of the common currency.