The European Commission proposes to transform the 500-billion-euro European Stability Mechanism (ESM) into a European Monetary Fund (EMF) to more rapidly respond to financial difficulties in Eurozone member states.
© Reuters / Scanpix

"We propose to build on the success of the European Stability Mechanism, turning it into a European Monetary Fund. The transformation of the ESM to the European Monetary Fund will help to more efficiently deal with future crises," Valdis Dombrovskis, the European Commissioner for the Euro and Social Dialogue, told reporters after the Commission's meeting.

Under the Commission's proposal, the new fund would have the same financing capacity as the ESM, at 500 billion euros, but it would have to respond to financial shocks faced by Eurozone countries in a more rapid and more transparent way.

The EU's executive body expects the EU Council and the European Parliament to agree by mid-2019 on the establishment of the EMF.

The Commission on Wednesday also issued two communications that propose to consider establishing the post of a European minister of economy and finance and creating a separate Eurozone budget line within the overall EU budget.

The three proposals were first publicly mentioned by European Commission President Jean-Claude Juncker said in his State of the Union speech in mid-September.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Justice Minister asks top court about lift ban on Paksas

Justice Minister Elvinas Jankevicius has asked the Constitutional Court to clarify how to...

Lithuanian anti-trust body says recovering fine from Gazprom is difficult

Lithuania has so far failed to find Gazprom 's assets from which it could recover a 42-million-euro...

Achema turns to CJEU over LNG terminal's maintenance costs

Jonava-based fertilizer producer Achema and gas trade company Achema Gas Trade, both part of the...

Lithuania to give EUR 4.5 mln in solar power plant support to residents

The Lithuanian government plans to allocate 4.5 million euros in financial support to residents who...

Spending on home purchases grows 15,6 pct

Total spending on home purchases in Lithuania rose by 15.6 percent in the first quarter of 2019 from...