SEARCH

News » International

Updated: March 10, 2010 20:46 IST

France calls for reflection on European IMF

AP
print   ·   T  T  
Germany's Chancellor Angela Merkel smiles during a media conference at the Ministry of Foreign Affairs in Luxembourg, on Tuesday. Photo: AP.
Germany's Chancellor Angela Merkel smiles during a media conference at the Ministry of Foreign Affairs in Luxembourg, on Tuesday. Photo: AP.

France on Wednesday called for reflection over the idea of a European Monetary Fund to help EU member states in times of need, saying a decision to create such a body would take time.

The establishment of a European equivalent to the International Monetary Fund has support from Chancellor Angela Merkel, leader of the eurozone’s biggest country, who on Monday called it a “good and interesting idea.” The European Commission said negotiations over the creation of such a body could conclude as early as July 1.

Such a body could be a lender of last resort and keep financially troubled governments from unsettling the euro and global markets, the way the recent Greek debt crisis has, as the IMF usually does.

French government spokesman Luc Chatel, said on Wednesday that “the idea merits being examined” but that “a certain number of questions are on the table about whether or not to create such a European fund.”

He said such a fund would require changing the European treaty, recently updated on December 1 with the entry into force of the Lisbon treaty - after years of hair pulling.

A European fund “cannot be a determining element of the response to the Greek crisis because of the fact that it will take time,” he said.

The question of who pays for it also needs to be addressed, at a time when governments have little spare cash.

RELATED NEWS

IMF approves $102 mn loan to HaitiJanuary 28, 2010

More In: International | News
The Hindu presents the all-new Young World

An act that triggered a World War

A century ago this day, a double murder carried out by a group of Bosnian assassins became a historic event. »  

National

Business

Cricket

Sport


O
P
E
N

close

Recent Article in International

Spanish city pushes for peace and quiet

Anyone having an ‘excessively loud’ conversation on streets now faces fines, as do bar owners who set up televisions on their terraces »