The European Union is considering the establishment of a European Monetary Fund similar to the IMF

The European Union continues to underpin its strategy to address speculation against the currency and to articulate the rescue of countries such as Greece, may be threatened by a debt crisis. Now the European Commission is working with France and Germany to launch a European Monetary Fund, similar to the IMF, the head of the aid to these States.

In return, would set stricter penalties for countries that exceed the limits of deficit and debt, as the freezing of structural funds, the temporary withdrawal of voting rights at meetings of Council of Ministers of the EU and even the temporary suspension of its participation in the eurozone.

"The Commission is ready to propose this type of instrument for the EU", said Economic Affairs Commissioner, Olli Rehn, the German version of the newspaper Financial Times. "We are working closely with Germany, France and other countries," but warned that any aid that comes from this fund "should be tied to strict conditions.

The announcement of the new European Monetary Fund this weekend broke the German Finance Minister, Wolfgang Schäuble. "We are not planning a rival to the IMF, but we need an institution to ensure the internal balance of the eurozone it has at its disposal both the Fund's experience as comparable intervention mechanisms," Schäuble told the newspaper "Welt am Sonntag.

Both Brussels and Paris and Berlin have turned to Greece to attend the IMF for help and have insisted that the eurozone is itself to look for solutions.
Joint initiative to save Greece

French President Nicolas Sarkozy announced yesterday after meeting with Greek Prime Minister Giorgos Papandreou, his country prepares jointly with Germany and Greece, an initiative to combat speculative attacks inflicted on the country Hellene.
Everything suggests that the creation of this new agency would be part of the plan advanced by Sarkozy, but the president did not disclose any concrete steps and just make it clear that they would apply to have room to maneuver if necessary.

"I support stronger coordination of economic policies in the EU and the eurozone," said Schäuble. These statements involve a rapprochement of Germany, which has always resisted this increased cooperation, theses traditionally defended by France, that a genuine commitment to EU economic government. The agreement of the Franco-German paves the way for the proposal for a European Monetary Fund is approved by other EU partners.

The creation of the European Monetary Fund would be the most radical reform of the rules governing the operation of the eurozone since the single currency was launched in 1999. Some of these measures would require even a modification of the treaties, which may hinder its implementation through institutional reform fatigue following the difficulties in ratifying the Lisbon Treaty.