The European Commission (“EC“) published a communication and legislative proposal on the December 6, 2017, with the goal of finalizing Europe’s economic and monetary union.

The communication, which contained a number of measures, was directed at the European Parliament, the European Council, the Council of the EU and the European Central Bank.  The communication sets out deadlines for completing certain initiatives including a number of financial services measures relating to the capital markets union, as well as banking reforms.

The communication also outlined the legislative proposal for the establishment of the European Monetary Fund, which is intended to replace the European Stability Mechanism.  The European Monetary Fund will continue the European Stability Mechanism’s role of providing financial stability where this is required by member states, as well as raising funds by issuing capital market instruments.

The communication is available here and the legislative proposal is available here.