Finland differs with Commission on European Monetary fund

People cross a street amid a heavy snowfall in downtown Helsinki, Finland, 1 February 2018. [Iina Siniluoma/EPA/EFE]

Finland supports the idea of expanding the European Stability Mechanism (ESM) fund into a European monetary fund but does not back the European Commission’s proposal on having the European Parliament oversee it, Helsinki said yesterday (15 February).

The EU executive has suggested transforming the eurozone’s government-owned and run bailout fund into a European Monetary Fund in December, as part of its ideas for deeper euro zone integration. [Press release]

Finland’s centre-right coalition government said it does not support the Commission’s idea that a European monetary fund should become an EU institution overseen by the European Parliament.

“While the government takes a favourable view towards development of the ESM … it is not in favour of approving the Commission’s proposal for regulation”, Helsinki said in a statement.

“Instead, the ESM must be developed on the basis of the present intergovernmental treaty”.

The idea of expanding the role of the eurozone bailout fund is backed by Germany and France.

Finland is also opposed to proposals for a joint euro zone budget or common finance ministry.

Berlin continues quest for 'European Monetary Fund'

The German government still wants to set up a European monetary fund but the European Commission does not want to surrender any responsibility for assessing eurozone finances. EURACTIV’s partner Der Tagesspiegel reports.

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