As the last
Eurogroup meeting for the German finance minister Wolfgang Schäuble came to an
end in Luxembourg, the eurozone finance ministers debated on Monday on a future
backstop role of the European Stability Mechanism (ESM) and the future of the
European Monetary Union (EMU).
The
eurozone finance ministers head Jeroen Dijsselbloem, told the European press
corps after the end of the first formal session after the German elections that
the finance ministers of the 19 member states of the common currency are
supportive towards an enhancement of the future role of the ESM, as a eurozone
bailout fund a backstop role. According to Dijsselbloem, ESM’s new role could
strengthen financial stability.
ESM’s
managing director Klaus Regling agreed with Dijsselbloem that the new role of
the fund could prevent more crises in the future. “Now it seems likely that the
role of the IMF in the future might disappear,” said Regling and that “the ESM
and the Commission should work together, that would mean a broader engagement
on the design, and capabilities for euro area member states.”
Ministers
also agreed the ESM should remain outside EU treaties, according to
Dijsselbloem, as this would avoid a change in its governance in the near future
that could be rejected by EU voters.
Schäuble’s last Eurogroup
“I think we will miss him because of his
wisdom, also politically, and the fact that, though this is often not
acknowledged, he was always looking for a compromise,” said the Belgian finance minister Johan Van Overtveldt
at the Luxembourgish doorstep ahead of the meeting, while other ministers
prepared souvenirs for the minister.
The 18
ministers put their autographs on a large European flag, while the French
minister Bruno Le Maire handed him a bottle of wine, calling him a friend and
thanking him for “playing an important role in the development of the
eurozone”.
“Nothing
will be quite the same again,” said the Greek finance minister Euclid
Tsakalotos after signing the European flag.
“We have succeeded in eight years of crisis to
keep the euro stable against many expectations. So for me it’s quite a good
ending,” said the German minister for his legacy, avoiding further questions on
the issue.
https://www.neweurope.eu/article/eurogroup-agrees-backstop-role-esms-bailout-fund-schaubles-last-meeting/