07-12-2017
Euro Zone Reform: EU power play misses goal
The European Commission unveiled its ambitious program for euro zone reform on Wednesday ... The proposals include having the renamed EMF participate in a “stabilization function” to make preemptive loans to a member country to help ward off a brewing crisis. But economists from the Center for European Policy Studies, a neoliberal think tank in Germany, urged against it, warning that such a facility would lead to a lack of discipline. “The stabilization function harbors the risk that liability and control no longer go together,” CEPS economists Matthias Kullas and Bert Van Roosebeke said in a statement. “Financial transfers for member states that are hit by a financial shock reduces the individual responsibility to get ahead of the shock or to ensure its resolution.” ...read on