Bloomberg News

Westerwelle Proposes European Monetary Fund, Sueddeutsche Says

October 20, 2011

Oct. 21 (Bloomberg) -- The European Financial Stability Facility should eventually be transformed into a European Monetary Fund that can intervene in budgets of countries in crisis, German daily Sueddeutsche Zeitung reported, citing an internal foreign ministry document.

The fund would also manage insolvency procedures if countries can no longer service their debt, the newspaper reported, citing the document commissioned by German Foreign Minister Guido Westerwelle.

Necessary changes to the European Union treaties to create the fund could be prepared next year by a group that includes representatives of the EU Commission, the European Parliament, as well as governments and national parliaments, it said. Westerwelle has proposed the plan to Chancellor Angela Merkel.

To contact the reporter on this story: Jan Dahinten in Singapore at jdahinten@bloomberg.net

To contact the editor responsible for this story: Lars Klemming at lklemming@bloomberg.net


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