EU Finance Ministers agree on Reform of the Euro bailout Fund ESM

in the Middle of the Corona-recession have to get the Euro countries on Monday under the roof. The EU Finance Ministers have finally reached agreement on the Re

EU Finance Ministers agree on Reform of the Euro bailout Fund ESM

in the Middle of the Corona-recession have to get the Euro countries on Monday under the roof. The EU Finance Ministers have finally reached agreement on the Reform of the Euro bailout Fund ESM, told Federal Finance Minister Olaf Scholz (SPD) on Monday evening in Brussels.

An agreement "would really be a good sign in a stormy sea", had notified to Scholz before. Also the Euro-groups-chief Paschal Donohoe stressed that the Changes would strengthen the Euro and the banking Union, and as citizens, businesses and economies to support.

the Economic situation in the Eurozone, worse than

Actually thought the economic situation in the Euro area from the point of view of the International monetary Fund is hoping to be less favourable than just a few weeks ago. Because of the second Corona-the wave of the upturn could be the beginning of 2021 weaker. The IMF urge, therefore, not only to a rapid Start-up of the 750-billion-Euro heavy-Corona-re-building programme for Next Generation of EU; also for the completion of the ESM Reform and the strengthening of the Bank resolution Fund remained urgent tasks, it said.

Exactly the advice to the Minister of Finance on Monday afternoon. The Reform aims to strengthen the, founded in 2012, ESM precautionary credit lines for countries in economic and financial crises make it easier. At the same time, the Institution should take in Luxembourg, the task of re-insurance for the Bank resolution Fund the SRF. This so-called Backstop will "improve the impact strength of Europe in connection with large Bank insolvencies," said Scholz.

Italy has had Reform of the reserve blocks

Important for Germany, the continuation of a "culture of Stability" and the further reduction of non-performing loans in the banks, the Minister added. In addition, should be used in the case of bankruptcies, also, the available own funds.

Because of questions of detail, Italy had blocked the actually already a year ago, ready for signature Reform for a long time. In a hearing in the Italian Parliament, Minister of Finance, Roberto Gualtieri indicated on Monday, however, assent to the ESM-reform package. It will be decided quickly, could be introduced to the common Backstop even before the original target date of 2024. This rapid, joint hedging of the Bank's funds is in the sense of Italy.

in addition to ESM-Reform: 767 million Euro financial aid to Greece

authorized the Finance Ministers of The 19 Euro countries joined in the afternoon by Video. Prior to the debate about the ESM Reform, the Minister called for the release of 767 million euros to Finance aid for Greece. On the basis of a positive report from the EU Commission on the Reform progress of the highly indebted Euro country.

It had been preserved with high billion in loans from the ESM before the bankruptcy. In the meantime, Greece is financed again in the capital market, but must meet more strict requirements of the creditors.

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mmo/dpa
Updated Date: 01 December 2020, 01:26

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