Why was it necessary to lay down the principles of the ESM’s cooperation with the Commission?

When the ESM and its predecessor, the EFSF, were set up, their main task was to raise and disburse the money necessary for the rescue loans by issuing bills and bonds on the financial markets. Over time, the ESM has taken on additional responsibilities. With the ESM programmes for Cyprus and Greece, the ESM has become involved in policy related issues and has worked closely in particular with the Commission, but also with the European Central Bank (ECB) and the IMF. The current cooperation with the Commission has been reflected in a joint MoU signed in April 2018.

In November 2018, the Commission and the ESM agreed on a joint position. The joint position on future cooperation was incorporated in a memorandum of cooperation, which will enter into force at the same time as the amendments to the ESM Treaty.