Online seminar ‘The Road to a European Monetary Fund’
On 2 May, the FBF hosted an online seminar on the topic of ‘The Road to a European Monetary Fund’ with Rolf Strauch (European Stability Mechanism) and Marcello Messori (LUISS Guido Carli). The creation of an European Monetary Fund (EMF) is regarded by various as a necessity to improve the European Stability Mechanism (ESM), established during the euro crisis to fill a gap in the institutional set-up of the monetary union: that of a lender of last resort for sovereigns.
In this online seminar, Rolf Strauch (Chief Economist and Member of the Management Board, ESM) provided his overview on the prospects of deepening the European Monetary Union. Starting from the concept that more financial integration is needed to promote risk sharing via markets, Strauch explained that completing the Banking Union requires first the creation of a common backstop for the Single Resolution Fund (SRF) and the introduction of the European Deposit Insurance Scheme (EDIS), while completing the Capital Market Union requires first strengthening the European Supervision and harmonising insolvency and tax legislation. With respect of the role of the ESM, he argued the possible paths for strengthening the role of the ESM to make the EMU more robust. In this view, developing a European Monetary Fund is not a goal in itself, but could help to make the euro area economy more resilient.
The presentation was followed by a comment by Marcello Messori (Professor of Economics, LUISS Guido Carli University), who provided his comments on the implementation of EDIS, on the immplementation of a Sovereign Debt Restructuring Framework (SDRF) and on risk sharing in the European Union.