Berlin/Paris 09-03-2010
Germany and France are proposing the creation of a European Monetary Fund which would mirror the activities of the International Monetary Fund, but then only for the European Union.
The EMF proposal comes on the heals of the financial crisis EU-member Greece is experiencing – a deficit which is estimated at 12 percent of the country’s gross domestic product this year.
Fears of a default caused by Greece’s debt has caused the value of the Euro to decline by almost 5 percent in recent weeks.
Having an EMF would limit disruption caused by default of any single Euro zone member through the issuance of new debt backed by the fund – in laymans terms it is the EU’s way of saying “ currency speculators piss-off’!
A supporter to the EMF proposal thus far is the IMF head Dominique Strauss-Khan and Jean-Claude Junker PM of Luxembourg.
There has been a deafening silence from “The City” London and Wall Street – the two neighbourhoods where most of the scavenger-speculators operate- who have the most to lose from a unified Euro zone.
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