The federal structure of the Eurosystem has several advantages in addressing a number of challenges. First, the euro area enlargement is in many respects an important challenge for the Eurosystem. An increase in the number of members of the Eurosystem could influence the Governing Council’s capacity for timely and effective monetary policy-making in a substantially enlarged euro area.
In view of this, the Governing Council took the initiative ahead of time and proposed a reform of its voting modalities, which was eventually ratified by all EU Member States. These new modalities will ensure continued efficient decision-making in an enlarged Governing Council. Second, communication in a multicultural and multilingual currency area is a continuous challenge.