[ad_1]
The Netherlands and nine other EU Member States want the powers of the European ESM Emergency Fund to be extended. Thus, according to the EU country group, it is possible to react more quickly and more effectively to the financial and economic crisis.
"Countries have a responsibility to adhere to the European agreements on budget deficits and sovereign debt It is important to manage the crisis as efficiently as possible, and timely and appropriate action will limit the impact "said Finance Minister Wopke Hoekstra.
To this end, the role of the European Stability Mechanism (ESM) needs to be strengthened. the desired reductions and reforms of the euro area countries that are asking for money from the fund.
The group also wants that when a country finds itself in trouble because of a huge public debt, investors, and concerned investors, first lose their losses. It is only at this time and under strict conditions that the Emergency Fund can provide support
"This plan allows us to examine the problems and solutions , and I am happy to be able to work with a large number of EU partners, "says Hoekstra. In addition to the Netherlands, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Sweden, Slovakia and the Czech Republic are calling for a strengthening of the European crisis structure.
The MES provided financial assistance to five countries
Currently, the MES provides only funding. support programs for countries in financial difficulty, as in Greece in the past. The European Commission and the European Central Bank (ECB), among others, are dealing with the necessary reforms and cuts in exchange for financial support. The ten countries of the EU want to change that now.
The European Emergency Fund provided financial assistance to five countries during the crisis. Ireland, Cyprus, Portugal, Spain and Greece received support from the ESM Fund. Portugal, Ireland and Greece initially benefited from the support of the EFSF (European Financial Stability Fund), which was then absorbed by the ESM.
Source link
