The leaders of the European Union’s 27 members signed off on a proposal at a December 14 Eurogroup meeting for future reforms in the Eurozone, though no final deal on a Eurozone budget was included in the draft agreement.

Crucial reforms to the European Monetary Union (EMU) and a postponement of several crucial decisions to June 2019 were included in the modest package that the EU-27 agreed to move forward with.

The ability of Europe’s leaders to make any additional progress on a Eurozone budget remains an open question as questions over its purpose and financing remains unclear.

The did, however, endorse the idea of several suggested reforms to the European Stability Mechanism and asked the ministers of the Eurozone to guarantee that the ESM treaty can be amended by June.

The current batch of reform proposals would see the European Stability Mechanism become more transparent, while the leaders pave the way towards formulating a Single Resolution Fund to establish uniform rules and a procedure for the resolution of credit institutions.