Page - 147 - in Austrian Law Journal, Volume 2/2018

ALJ 2018 European Monetary Fund 147 2. The decisions of the Board of Governors and the Board of Directors shall be taken by unanimity, reinforced qualified majority, qualified majority or simple majority as specified in this Regulation. In respect of all decisions, a quorum of two thirds of the EMF Members with voting rights representing at least two thirds of the voting rights must be present. 3. Abstentions by members present in person or represented shall not prevent the adoption of a decision requiring unanimity. 4. The adoption of a decision by reinforced qualified majority requires 85% of the votes cast. 5. The adoption of a decision by qualified majority requires 80% of the votes cast. 6. The adoption of a decision by simple majority requires a majority of the votes cast. 7. The voting rights of each EMF Member, as exercised by its representative on the Board of Governors or Board of Directors, shall be equal to the number of shares allocated to it in the authorised capital stock of the EMF. (…)’.58 Articles 4(2) and 4(4) thus introduce a reinforced qualified majority, which requires 85% of the votes cast. According to Article 5(7), the Board of Governors shall take the following decisions by such a reinforced qualified majority: (…) (a) provide stability support to EMF Members, including the policy conditions as stated in the memorandum of understanding referred to in Article 13(3), and to establish the choice of instruments and the financial terms and conditions, in accordance with Articles 14 to 18; (b) request the Commission to negotiate, in liaison with the ECB, the economic policy conditions attached to each financial assistance, in accordance with Article 13(3); (c) change the pricing policy and pricing guideline for financial assistance, in accordance with Article 20.59 In other words, fundamental decisions by the EMF, such as the provision of stability support no longer require a unanimous vote as was the case under the old Article 5(6)(f) ESMT; rather a reinforced qualified majority will suffice in the future. The same is true for the decision to request the Commission to negotiate the economic policy conditions attached to each financial assistance, as well as for the decision to change the pricing policy for financial assistance.60 Conditions are lowered even further under the new emergency procedure set out in Article 3(2) of the draft Regulation. It provides: (2) Where circumstances require the urgent provision of stability support to an EMF Member in accordance with Article 16, decisions may be taken by an emergency procedure. In such an event, the decision taken by the Board of Governors or the Board of Directors shall be transmitted to the Council immediately after its adoption together with the reasons on which it is based. Upon request of the Chairperson, the Council shall discuss the decision, within 24 hours of its 58 Article 4(2)-(8) of the Draft Statute of the EMF, supra note 55, at 2. 59 Article 5(7)(a)-(c) of the Draft Statute of the EMF, supra note 55, at 3. 60 See Article 5(7)(b)-(c) of the Draft Statute of the EMF, supra note 55, at 3.