Within a year, they could create the European Monetary Fund (EMF) through the transformation of the Eurosystem’s permanent financial stability mechanism (ESM), following proposals submitted by the European Commission (EC) on Wednesday to deepen economic and monetary union.
The Brussels body has asked the EU co-legislators to adopt the proposal to set up an IMF called IMF after the International Monetary Fund by mid-2019.
As announced, the new organization would essentially safeguard the current financial and institutional structure of ESM, ensuring that Member States can continue to receive assistance in case of difficulties. The currency fund would offer a common security net for the Unified Settlement Fund and would act as the ultimate lender in order to settle the troubled banks. Over time, the organization could develop new financial tools, such as supporting a possible stabilization function.
The EB also indicated that it would be desirable to set up a joint post of Minister of Finance and Economy, but this was not followed by a specific legislative draft.
According to the information, the minister will also serve as vice-chairman and chairman of the Eurogroup as the EU Treaty allows. They pointed out that if the details were to be agreed by the middle of 2019, then EB could be next with this new office.
“The new office would strengthen the consistency, efficiency, transparency and democratic accountability of the EU and euro area economic policies, while fully respecting national competencies,” the Brussels communication states.
“After the years of the crisis, we have time to take the future of Europe into our own hands, and today’s strong economic growth encourages us to move forward.” The roof is to be repaired when the sun is shining, “said Jean-Claude Juncker, .
However, according to some experts, the package of proposals is much less ambitious than expected because of sharp differences between Member States.
At the Commission press conference, they asked Mr Pierre Moscovici, EU Commissioner for Financial Affairs, to make a “irrefutable offer” for the non-participating Member States to join the euro area. The former French minister said it was merely a funny comment, but of course they will not force anyone. He added: this is a good offer that can be seized by those who want to introduce the euro and they will help.
Source: MTI / Image: hirek.ma /