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The Board of Governors is comprised of these finance ministers, who represent the elected governments of the euro countries and make all essential decisions. Fundamental decisions – for example, regarding the granting of financial assistance; the conditionality involved; the instruments to be used; and financing conditions – are to be taken unanimously. If a decision about financial assistance has to be taken urgently, there is an emergency voting procedure that requires a qualified majority representing 85 per cent of the ESM’s capital shares. Organisational and technical decisions require a qualified majority of 80 per cent. Germany’s share of voting rights is 27.1464 per cent, which corresponds to its share of capital commitments to the ESM.
In addition to the Board of Governors, the ESM has a Board of Directors, which is also comprised of one representative per euro member. The Board of Directors, which is responsible for the day-to-day management of the ESM, met for the first time on 9 October 2012.
If any decisions to be taken by the Board of Governors or Board of Directors affect the overall budgetary responsibility of the German Bundestag, Germany’s representatives on these boards may not agree to such decisions unless they have obtained the Bundestag’s prior consent. Germany’s ESM Financing Act provides for the close involvement of the Bundestag in other aspects of the ESM’s work as well.