Rotation in the ECB Governing Council

There is an amendment of Decision ECB/2004/2 of 19 February 2004 adopting the Rules of Procedure of the European Central Bank that introduces a so-called rotation system for voting rights in the Governing Council of the ECB.

The EMU member states are divided into three  groups according to their shares in aggregate GDP of the euro area and the relative size of their financial systems, measured against the total aggregated balance sheet of the financial institutions in EMU. For the first group, the number of voting rights that rotate in each one month period shall be one; for the second and third groups, the number of voting rights that rotate in each one month period shall be equal to the difference between the number of governors allocated to the group and the number of voting rights assigned to it, minus two. Governors will rotate in and out of the voting right after one month.

This rotation model has been criticized for being very complicated and intransparent.

However, it is an interesting concept first because the decision making process of the ECB is a problem serious enough, and second – because it may turn out that that a rotation system for the European Commission is needed before November 2009. I certainly hope that we will not have a Commission where commissioners’ voting rights rotate in groups of countries every month.

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