Lagarde wants initiative for investment in Europe – Express

“There should be [in Europe] a mechanism for greater sharing of risks and mitigate sharp fluctuations in living standards. There is room for a stronger center which has the means to support the sectors and regions that are affected by cyclical negative swings, “he said Friday in Vienna, Christine Lagarde, the managing director of the International Monetary Fund (IMF).

Fulfilling the idea, Lagarde proposed as a starting point to create a “centralized investment scheme to solve some of the major common challenges [in Europe], the resolution of the refugee problem, adapting to changes climate and investment in transport and communication infrastructure. “

the head of the IMF intervened at the” Finance in Dialogue “in defense of” unity in diversity of Europe “where the Union considered European Union (EU) as “the greatest innovation since the birth of the nation state by the Treaty of Westphalia in 1648″ and gave its support to the United Kingdom staying in the EU.

the head of the IMF had advanced with the theme of the common fund after meeting Thursday Eurogroup in Luxembourg in which it participated, adding then that the consideration to give the beneficiaries would be compliance with the Stability and Growth Pact and the recommendations on structural reforms. This new centralized budgetary fund would be complementary to Juncker European Commission initiative that led to the creation of the European Fund for Strategic Investments managed by the European Investment Bank. Or it could be based on the “expansion” of the Commission Fund, as is assumed in the situation assessment report on the euro area presented by the IMF Eurogroup under Article IV of the Fund. The Commission’s initiative was designed to fund EUR 21 billion in projects, and to date has signed commitments of 1.8 billion.

In this report highlights is soon to open, the “euro zone is a critical time” facing “increasing political divisions and Euroscepticism” – adding that a win Brexit , or even a victory to the tangent of the option by the UK stay in the EU, British June 23 referendum could exacerbate these trends – and reveals “vulnerability to a risk of stagnation”

the Fund staff proposed to the Eurogroup an approach based on four pillars based on “collective action”:. creation better incentives for countries to carry out structural reforms; strengthening of a budgetary framework of rules simultaneously with central budgetary support (which includes the idea of ​​the new fund); continuation by the European Central Bank monetary policy stimulus, albeit with caution about the negative effects if certain measures are depth (as further negative rates in the remuneration of bank deposits at the ECB); and speeding up the settlement of the banking problem. In the long run, the technicians point to the need for a centralized treasury eurozone.