Webinar: Deepening Economic and Monetary Union (EMU) and the role of the European Stability Mechanism (ESM)
Introduction by Steven VANACKERE, Vice-governor National Bank of Belgium
Introductory remarks by Vincent VAN PETEGHEM, Deputy Prime Minister and Minister of Finance in charge of the Fight against Tax Fraud
Presentation will be given in English; there will be no simultaneous translation.
About the theme:
Klaus Regling will speak about the ESM’s enlarged mandate and its role in helping to make the euro area as a whole more stable and resilient to future shocks. Klaus Regling will also outline the broader reforms needed to deepen Economic and Monetary Union in the years ahead.
The mandate of the ESM is to provide financial assistance to euro area countries experiencing or threatened by severe financing problems.
For this, the ESM can use several instruments. The ESM can grant a loan as part of a macroeconomic adjustment programme, such as the one that was already used by Cyprus and Greece. Ireland, Greece, and Portugal have used similar programmes delivered by the European Financial Stability Facility (EFSF). The only other instrument used, was an ESM loan to indirectly recapitalise banks and which was provided to Spain.
In addition to its existing toolkit, the ESM has created the Pandemic Crisis Support (PCS), a credit line available to the ESM Members to support domestic financing of healthcare, cure and prevention related costs due to the COVID-19 crisis. The PCS is based on one of the ESM’s existing precautionary credit lines and adapted to the pandemic crisis. This credit line is available until the end of 2022.
About the speaker:
Klaus Regling is the Managing Director of the European Stability Mechanism and the CEO of the European Financial Stability Facility (EFSF).
Klaus Regling has worked for over 40 years as an economist in senior positions in the public and the private sector in Europe, Asia, and the U.S., including a decade with the IMF in Washington and Jakarta and a decade with the German Ministry of Finance where he prepared Economic and Monetary Union in Europe. From 2001 to 2008, he was Director General for Economic and Financial Affairs of the European Commission.