Berlin, Helsinki and The hague to strengthen IMF

Berlin, Helsinki und Den Haag treiben IWF-Stärkung voran
Berlin, Helsinki and The hague to strengthen IMF

German finance minister Wolfgang Schäuble (CDU) has discussed a stronger supply of funding of the International Monetary Fund to fight the debt crisis at a meeting with the Finnish finance minister Jutta Urpilainen and the Dutch finance minister Jan Kees de Jager. "We have discussed ways of improvement of the IMF funding, including bilateral credits to the IMF or a general raise of funding", the three ministers declared in a written statement after the meeting in Berlin.  It is necessary to erect a "firewall" Urpilainen declared. "Today we agreed that one option to achieve that goal is to strengthen the role of thee IMF" she said. De Jager shared this view. "We are in support of a stronger role of the IMF" he declared. De Jager said, this could be achieved by bilateral loans or by using special drawing rights. Schäuble did not comment on that issue.


The German finance minister hinted possible changes at the Euro safety umbrella ESM. "If we progress towards a union of stability one shall see how that would adapt to the ESM treaty (???=> source wary)"


Schäuble reiterated further decisions for a solution of the crisis are now inevitable. "We completely agree in question that we now really have to take decisions in order to solve the critical situation at the fincial markets", he said. The European heads of state and heads of governments would make decisions at their meeting on Dec. 9th, "to ban the danger that out of the nervousness of the financial markets severe harm of the real economy would arise" 

Germany and France have already announced to come forward with proposals for limited treaty changes that will allow interventions in budgets of deficit sinners. Schäuble again endorsed such changes on Friday and opined the protocol No 14 of the lisbon treaty could be used "as basis to enhance the monetary union towards a stability union". All measures must be directed towards a solution of the problems within those individual countries.

Schäuble also said that next Tuesday the eurogroup would decide upon a report of the so called troika of IMF, European central bank (ECB) and EU-commission about the next trance for Greece. Upon a question of a stronger role of thee ECB in the crisis he reiterated, "that we all see the independence of the ECB as a critical prerequisite for the stability of the common currency" It was not discussed about the policy of the ECB at this meeting. "That's not the task of finance ministers"
Urpilainen reiterated from a Finnish viewpoint the enhancement of the efficiency of the EFSF has highest priority but she didn't rule out a bigger role of the ECB als LOLR. "If nothing else remains then we can think about a strengthening of the role of the ECB", reiterated the Finnish finance minister. At once she categorically ruled out common eurobonds.