Germany Considers the Creation of a European Monetary Fund, IMF Model

German Finance Minister Wolfgang Schaeuble told the weekly Welt am Sonntag that given the acute financial problems facing Greece ; the Eurozone should give proper consideration to the  idea of creating an organization with powers similar to the Washington-based International Monetary Fund [IMF].

AFP: “We’re not planning an institution that would compete with the IMF, but for the internal stability of the eurozone, we need an institution that has the experience and power of the IMF,” Mr. Schaeuble told the paper on Sunday.

He added that the EU “should calmly discuss the consequences of the Greece crisis and should not rule anything out, even the creation of a European Monetary Fund.”

With Greece facing more than 20 billion euros in debt redemptions in April and May, EU officials have expressed serious concerns over the threat that Greece’s situation poses to the entire euro zone and in particular to the strength of the region’s common currency, the euro.

“We should not allow our common European currency to become a football for international speculators,” Schaeuble was quoted as saying.

According to several media reports, citing German lawmakers, the EU is in the process of devising a plan to grant Greece about 25 billion euros (enough to cover the maturing debt) in aid should the need arise. The plan will consist of credits and guarantees by fellow Eurozone member states.

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About Ron Haruni 1065 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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