European Monetary Fund: in the Making?

The idea for a European Monetary Fund (EMF), put forward by Daniel Gros and Thomas Mayer, is gaining new ground. FT reports that the German finance minister Wolfgang Schäuble has revealed the first details of a plan for establishing the EMF.

Mr. Schäuble said that the EMF would be an institution for the internal equilibrium of the eurozone that would have at its disposal both the experience of the IMF, and comparable intervention mechanisms. The idea is also to include tough penalties for eurozone members that fail to curb deficit spending or run up excessive government debt.

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