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“.

US tariffs to affect 0.12 pct of exports to US

US tariffs on 7.5 billion US dollars’ worth of EU goods, imposed by President Donald Trump last...

SBA to produce modular apartment buildings

The SBA Group, one of Lithuania’s largest corporate groups, has taken the decision to enter a new...

Multifunctional car park is nearing completion at Vilnius airport

Construction of a modern multifunctional car park commenced at Vilnius airport last year is nearing...

New success for Vilnius: ranked No.1 by Financial Times

Financial Times ’ fDi Intelligence division announced the list of 30 cities that have attracted the...

Highest-earning athletes named

15 basketball players, three football players and two ice hockey players got into the Top-20 of...