The euro zone needs an intergovernmental European Monetary Fund (EMF) able to give troubled member states shorter-term credit lines if they run into debt problems that threaten the whole bloc, German Chancellor Angela Merkel said in a newspaper interview on Sunday.
German Chancellor Angela Merkel looks on during a news conference with Portugal's Prime Minister Antonio Costa in Lisbon, Portugal, May 31 2018. (Photo: Reuters)
“If the whole euro zone is in danger, the EMF must be able to give long-term credits in order to help countries,” Merkel told the Frankfurter Allgemeine Sonntagszeitung. “Such credits would be spread over 30 years and be conditioned on sweeping structural reforms.”
She added: “In addition I can imagine the possibility of a credit line that is short-term, five years for example. As such we would be able to take under our wing countries that get into difficulties because of extraordinary circumstances.”