The European Commission unveiled on Wednesday (6 December) a plan that would give it more power over the eurozone, while strengthening the links with non-euro member states.
As expected, the EU executive proposed to transform the European Stability Mechanism (ESM), the eurozone’s emergency fund, into a European Monetary Fund by mid-2019. The fund would still be responsible for the financial support of countries in need, with a lending capacity of €500 billion. But it would have a greater role in designing the bailout plans.
It would also provide the backstop to the single resolution fund, an additional mechanism to the existing fund for failing banks. The commission also proposed to create, as early as 2019, a European finance minister to manage the fiscal and macroeconomic surveillance of member states and the use of EU budget tools.
This “strong management toolbox,” commission vice president Valdis Dombrovskis said, will help weather economic shocks. The commission’s proposals, he said, are “another step in the ongoing process of [a] more stable EMU” (Economic and Monetary Union). For that purpose the EU executive will step up its services to help member states making structural and administrative reforms…
Read more : EUObserver, 06.12.2017