How we decide
Shares and capital per ESM Member
Germany
| ESM Members | ESM key (%) | Number of shares | Subscribed capital (€ 000) |
Paid-in capital (€ 000) |
|---|---|---|---|---|
| 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 |
| 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 |
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.
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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.
The Board of Governors meets at least once a year and whenever the affairs of the ESM so require.
- The annual meeting of the Board of Governors
- Rules of Procedure of the ESM Board of Governors (PDF, 95 KB)
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.
Head of Financial Unit at the Permanent Representation of Slovakia to the European Union Slovakia
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.
- 2017 Annual Report to the Board of Governors
- 2017 ESM management comments
- 2016 Annual Report to the Board of Governors
- 2016 ESM management comments
- 2015 Annual Report to the Board of Governors
- 2015 ESM management comments
- Rules of procedure of the Board of Auditors (PDF, 78.6 KB)
- Code of Conduct of the Board of Auditors (PDF, 136 KB)