The International Monetary Fund (IMF) wants the European Central Bank (ECB) to take greater responsibility in the event of a future crisis in the euro area. According to our sources, the IMF in exchange for aid payments to Member States calls for a written assurance from the central bank to carry out rescue operations in accordance with the IMF. "If there are measures that are crucial to the success of a program, the funds of the Fund cannot be made available without a satisfactory assurance at the European Union level," states a 36-page paper entitled "Program Design in Currency Unions".
The reason for the reflections is that members of monetary units have assigned parts of their responsibilities to supra-governmental agencies. In the usual agreements with countries in need of payment, the governments concerned can no longer make commitments in these areas. In the previous regulations such cases are not regulated. "The current state is no longer a viable option," the paper explains.
The European representatives at the IMF are resisting the plans. They consider the reflections an attack on the independence of the ECB. A meeting of the board at which the plans were to be discussed had already made them take action.
Source
The reason for the reflections is that members of monetary units have assigned parts of their responsibilities to supra-governmental agencies. In the usual agreements with countries in need of payment, the governments concerned can no longer make commitments in these areas. In the previous regulations such cases are not regulated. "The current state is no longer a viable option," the paper explains.
The European representatives at the IMF are resisting the plans. They consider the reflections an attack on the independence of the ECB. A meeting of the board at which the plans were to be discussed had already made them take action.
Source
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