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ESM Board of Governors

How we decide

Shareholders

Each ESM Member contributes to the ESM authorised capital based on each country’s respective share of the EU total population and gross domestic product. The accession of new Members is factored into the capital key, slightly reducing the founding Members’ contribution keys. Nominal capital subscription and paid-in capital amounts remain unchanged.

 

Shares and capital per ESM Member

Germany
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ESM Members ESM key (%)sort descending Number of shares Subscribed capital (€ 000) Paid-in capital (€ 000)
Malta 0.0726 5,117 511,700 58,480
Estonia 0.1847 13,020 1,302,000 148,800
Cyprus 0.1949 13,734 1,373,400 156,960
Luxemburg 0.2487 17,528 1,752,800 200,320
Latvia 0.2746 19,353 1,935,300 221,200
Lithuania 0.4063 28,634 2,863,400 261,760
Slovenia 0.4247 29,932 2,993,200 342,080
Slovakia 0.8184 57,680 5,768,000 659,200
Ireland 1.5814 111,454 11,145,400 1,273,760
Finland 1.7852 125,818 12,581,800 1,437,920
Portugal 2.4921 175,644 17,564,400 2,007,360
Austria 2.7644 194,838 19,483,800 2,226,720
Greece 2.7975 197,169 19,716,900 2,253,360
Belgium 3.4534 243,397 24,339,700 2,781,680
Netherlands 5.6781 400,190 40,019,000 4,573,600
Spain 11.8227 833,259 83,325,900 9,522,960
Italy 17.7917 1,253,959 125,395,900 14,330,960
France 20.2471 1,427,013 142,701,300 16,308,720
Germany 26.9616 1,900,248 190,024,800 21,717,120

ESM Governance structure

The ESM governing bodies are the Board of Governors and the Board of Directors. The Managing Director of the ESM is appointed by the Board of Governors for a renewable term of 5 years. The ESM Managing Director is Klaus Regling.

With the assistance of the Management Board, he is responsible for conducting the current business of the ESM under the direction of the Board of Directors.

The infographic below illustrates the ESM's governance structure:

Board of Governors
The Board of Governors is the ESM’s highest decision-making body. It comprises government representatives of each ESM Member with responsibility for finance. Representatives of the EC and the ECB may participate in its meetings as observers. The Board of Governors is chaired by the President of the Eurogroup, Mário Centeno.
 
Board of Directors
The Board of Directors consists of senior civil service officials from each ESM Member who are highly competent in economic and financial matters. The EC and the ECB may participate in its meetings as observers. The Board of Directors ensures that the ESM is run in accordance with the ESM Treaty and the By-Laws. It takes decisions as provided for in the ESM Treaty or as delegated by the Board of Governors.
Managing Director
The Managing Director, Klaus Regling, is responsible for conducting the current business of the ESM under the direction of the Board of Directors. The Managing Director chairs the meetings of the Board of Directors and participates in those of the Board of Governors. He is the ESM’s chief of staff and legal representative.
Board of Auditors
The Board of Auditors is an independent oversight body composed of five members. They are appointed by the Board of Governors upon proposal of the Chairperson of the Board of Governors, the supreme audit institutions of the ESM Members on a rotating basis, and the European Court of Auditors.
Management Board
The Management Board assists the Managing Director in conducting the current business of the ESM, preparing the decisions of the Board of Governors and the Board of Directors and seeing to their implementation.
Finance Committee
Approves and takes action on matters related to ESM structural risks as defined in the ESM Risk Policy, mainly re-financing, liquidity and interest rate risks related to its operations.
Internal Risk Committee
Considers any matters regarding the evaluation, monitoring and approving of practices linked to the implementation of the ESM Risk Management Framework and risk management within ESM operations.
Investment Management Committee
Considers matters regarding the implementation of the ESM Guideline on Investment Policy for the ESM Investment Portfolios and the Liquidity Buffer.
Corporate Projects Committee
Prioritises, approves, and oversees the execution of all ESM corporate projects.
Banking Committee
Performs technical reviews and provides final internal approval prior to the submission of proposals linked to the direct recapitalisation instrument (DRI) to the Board of Governors, Board of Directors or any other external counterparties. The Banking Committee only convenes in the context of a DRI operation and therefore did not formally meet during 2014.
Incident Management Team
Oversees the development and implementation of an effective business continuity capability within the ESM and coordinates the ESM response in the event of incidents that may affect normal ESM operations.
Budget Review and Compensation Committee
The Budget Review and Compensation Committee advises the Board of Directors and the Managing Director on matters of staff compensation and periodically revises the framework and principles of staff compensation, the total annual salary mass and the evolution of the salary band boundaries.
Board Risk Committee
The Board Risk Committee advises the Board of Directors on the ESM’s overall current and future risk appetite. It also assists the Board of Directors in reviewing and overseeing the implementation of the ESM risk management framework by the Managing Director.

Board of Governors

The Board of Governors is the highest decision-making body of the ESM. It comprises government representatives of each of the 19 ESM shareholders with the responsibility for finance. Representatives of the European Commission and the ECB may participate in its meetings as observers. The Board of Governors is chaired by the President of the Eurogroup, Mário Centeno

BE NL DE EE IE EL ES FR IT CY LV LT LU MT AT PT SI SK FI

Paschal Donohoe

Minister of Finance Ireland

Vilius Šapoka

Minister of Finance Lithuania

Petteri Orpo

Minister of Finance Finland

Peter Kažimír

Deputy Prime Minister and Minister of Finance Slovakia

Andrej Bertoncelj

Minister of Finance Slovenia

Mário Centeno

Minister of Finance, Chairperson of ESM BoG, Portugal

Hartwig Löger

Minister of Finance Austria

Wopke Hoekstra

Minister of Finance The Netherlands

Edward Scicluna

Minister for Finance Malta

Pierre Gramegna

Minister of Finance Luxembourg

Dana Reizniece-Ozola

Minister of Finance Latvia

Harris Georgiades

Minister of Finance Cyprus

Giovanni Tria

Minister of Economy and Finance Italy

Bruno Le Maire

Minister for the Economy and Finance France

Nadia Calviño

Minister of Economy, Industry and Competitiveness Spain

Euclid Tsakalotos

Minister of Finance Greece

Toomas Tõniste

Minister of Finance Estonia

Johan Van Overtveldt

Minister of Finance Belgium

Olaf Scholz

Federal Minister of Finance Germany

The Board of Governors meets at least once a year and whenever the affairs of the ESM so require.

The Board of Governors documents its work in annotated meeting agendas, summing up letters, decisions and underlying documents. They are available for review and download in its meeting documents library

Board of Directors

The Board of Directors consists of representatives from each of the 19 ESM Members. Each Governor appoints one Director and one alternate Director. The European Commission and the ECB may participate in its meetings as observers.

The Board of Directors takes decisions as provided for in the ESM Treaty and By-Laws or as delegated by the Board of Governors. Decisions are taken by qualified majority, unless otherwise stated by the ESM Treaty. The Board of Directors' meetings are chaired by the ESM Managing Director.

BE NL DE EE IE EL ES FR IT CY LV LT LU MT AT PT SI SK FI

Nicholas O’Brien

Assistant Secretary General Ireland

Miglé Tuskiené

Vice-Minister Lithuania

Tuomas Saarenheimo

Permanent Under-Secretary Finland

Peter Paluš

Head of Financial Unit at the Permanent Representation of Slovakia to the European Union Slovakia

Gorazd Renčelj

State Secretary, Ministry of Finance Slovenia

Ricardo Mourinho Félix

Deputy Finance Minister and Secretary of State for Finance Portugal

Harald Waiglein

Director General for Economic and Finance, Chairperson of EFSF BoD Austria

Christiaan Rebergen

Treasurer-General at the Ministry of Finance The Netherlands

Alfred Camilleri

Permanent Secretary, Ministry for Finance Malta

Isabelle Goubin

Director of the Treasury, Ministry of Finance Luxembourg

Līga Kļaviņa

Deputy State Secretary Latvia

George Panteli

Director of Economic Research and European Union Affairs Directorate Cyprus

Alessandro Rivera

Director General of the Treasury Italy

Odile Renaud Basso

Director General of the Treasury France

Carlos San Basilio

Secretary General of the Treasury and Financial Policy Spain

George Chouliarakis

Alternate Minister of Finance Greece

Märten Ross

Deputy Secretary General for Financial Policy and External Relations Estonia

Steven Costers

Counselor General, Ministry of Finance Belgium

Jörg Kukies

State Secretary, Ministry of Finance Germany

The Board of Directors is supported by the Risk Committee and by the Budget Review and Compensation Committee.

The Board of Directors documents its work in annotated meeting agendas, summing up letters, decisions and underlying documents. They are available for review and download in its meeting documents library

Board of Auditors

The Board of Auditors is an independent oversight body of the ESM. The Board of Auditors inspects the ESM accounts and verifies that the operational accounts and the balance sheet are in order. Under its mandate as per the ESM Treaty and By-Laws, it audits the regularity, compliance, performance, and risk management of the ESM and monitors the ESM internal and external audit processes and their results.

The Board of Auditors prepares an annual report in respect of the ESM Financial Statements, which is contained in the ESM Annual Report in addition to the External Audit Opinion. Furthermore, the Board of Auditors draws up an Annual Report for the Board of Governors on its audit work, audit findings, conclusions, and recommendations. This report is made accessible to the national parliaments and the supreme audit institutions of the ESM Members, as well as to the European Court of Auditors and the European Parliament together with the ESM management comments issued in response to the report.

 

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