Europe’s heads of state and government have agreed at their summit on a Reform of the Eurozone. This also includes a budget for the Euro zone, belong to German Chancellor Angela Merkel (CDU) announced. Adopted a strengthening of the Euro rescue Fund, the ESM, and a financial safety net for the settlement of insolvent banks.
The 2008 financial crisis had hit Europe unprepared. In the result of companies, banks and whole States were in a downward spiral. Only in the utmost Emergency, and with billions in loans from the Euro partners and the International monetary Fund IMF about Greece was saved from bankruptcy, which would have long-reaching consequences for the entire Euro-zone.
The EU heads of state and heads of government commissioned the Minister of Finance, the specific Changes in the ESM Treaty in the coming year. This must be in each of the States ratified it.
ESM will allow early intervention
In Detail to the intervention of the ESM in future, not only in case of an Emergency, but sooner. This is to prevent minor problems develop into major crises.
in addition, it is to administer relief programs more. The crisis in Greece, the Troika of the EU Commission, the European Central Bank and the IMF played the Central role. Between the IMF and the Europeans there were, however, often dispute. The strengthening of the ESM is likely to lead to the IMF pulls the short or long back from Europe.
The ESM is supposed to come also in the case of Bank failures and before 2020, the Bank resolution Fund, SRF to increase. In these funds, the banks figures at the Moment, gradually. He is to prevent that in the future taxpayers ‘ money for Bank bailouts be needed.