Europe considers getting rid of IMF and creating own fund..really?

https://www.rt.com/business/408190-europe-wants-replace-imf/

Relations between Europe and the International Monetary Fund (IMF), which have carried out several bailout programs together, may change dramatically as the eurozone intends to replace the fund’s presence in bailouts.

The European Commission plans to give more responsibility to the European Stability Mechanism (ESM) which helps eurozone countries to borrow money. The ESM will monitor and enforce compliance with bailout programs while continuing to disburse funds.

“The euro area is more resilient now than in years past… I believe the ESM should now progressively graduate into a European Monetary Fund which, however, must be firmly anchored in the European Union’s rules and competences,” Jean-Claude Juncker, European Commission president, told lawmakers in September.

Analysts say by creating its own IMF the eurozone will deepen links within the union and thereby become more resilient to financial shocks. The move would also make Europe independent from the IMF each time a euro currency country needs financial rescue.

The eurozone wants to build up its own “firefighter” for potential future sovereign crises, chief economist at ING, Carsten Brzeski told CNBC.

“An EMF (European Monetary Fund) would also leave eurozone problems to be solved by the eurozone and not by outsiders,” he said.

———–

when i see it i will believe it..it will never “replace” the imf..

“The European Commission plans to give more responsibility to the European Stability Mechanism (ESM) which helps eurozone countries to borrow money. The ESM will monitor and enforce compliance with bailout programs while continuing to disburse funds.”

they want a fireman..to put out fires..

“The eurozone wants to build up its own “firefighter” for potential future sovereign crises”

better get on the truck now..i see smoke..

401

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~ by seeker401 on November 8, 2017.

3 Responses to “Europe considers getting rid of IMF and creating own fund..really?”

  1. Maybe it will happen. First, it does not necessarily mean the EU breaks ties with the IMF. An EMF would be a regional central bank. It may also relieve the pressure in the banking system. It would provide another large holding cell for the deteriorating world wide economic system. If it would work the way I outlined, it would be analogous to the fiat money being printed. If more money is printed in a certain geography eventually the money becomes worthless. Yet if a new geography, like a large loaning bank was made, then the money and debt system can expand into the new geography, which makes the world wide debt thinner. If true, they could theoretically make numerous more banks at regional levels, or any level of society which has less competition, e.g. there is no EMF now. It would displace the debt into other areas.

    There probably is something in this scenario that I am not thinking about which may make this implausible. Just thinking out loud on this one.

    • perhaps they dont want to be beholden to imf/ratings agencies downgrades in some way?

      • perhaps, or it is a federal reserve system in the making at a regional level. It may give more direct control over the EU brought about by a system that is already in place, i.e. ESM. The EMF may be beholden to imf/ratings agencies still, but only for the IMF to control transactions between the EU and outside regions.

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