Thursday, June 16, 2016

IMF revives idea of ​​a budget to support the euro zone reforms – The Financial

BRUSSELS The International Monetary Fund called for the creation of a budget to help finance ref structural TANDARDS in the euro area reiterating the ideas proposed by the European Commission in 2012 and were ruled by opposition from Germany.

the IMF managing director, Christine Lagarde, said, however, that capital for the benefit of the euro area would only be available to countries respect the rules of the set in the stability and growth pact (SGP) block budget.

“My idea is that in exchange for the fulfillment of the stability and growth pact, to meet commitments reforms structural, in return, get together countries budgetary resources into a common fund that can be used for certain projects and operations, “Lagarde said.


structural reforms are key to boosting growth rates in the euro zone and return to their economies more resilient to shocks, he said.

Lagarde said that the common money could be used similar to cash the European Fund for Strategic investments, which occupies relatively small resource block amounts way to attract 15 times more capital from private funds to finance specific investments.

the new incentives could “help offset the initial net costs of structural reforms, “the IMF said in a report on the economy of the 19 countries sharing the euro.

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