Tuesday, March 09, 2010

European Monetary Fund...

...being bandied about by the political/intelligentsia crowd. It appears untenable given the current climate and its response to transferrals based on malfeasance or incompetance...and especially, dare I say, if said funds come from protestant to catholic countries.

LUXEMBOURG/FRANKFURT, March 9 (Reuters) - European policy makers played down on Tuesday the idea of creating a European Monetary Fund, saying it was at most a long-term project that did not offer a solution to Greece's immediate debt problems.

Influential German central bank chief Axel Weber, seen as front-runner to be the next president the European Central Bank, branded discussion of a fund that could aid euro zone countries in financial distress "counterproductive". [LAG006164]

"It's not helpful to talk about ways to institutionalise help when the question is how to implement the (Greek) budget reforms," Weber told a news conference, saying the "no bailout clause" was central to European monetary union.

His concerns echoed strong criticism by ECB Executive Board member Juergen Stark, who said on Monday that such a fund would penalise countries with solid finances and encourage wayward spending. [ID:nLDE62720I]

No comments: