BRUSSELS (MNI) – European Central Bank Vice President Vitor
Constancio warned EU lawmakers Tuesday against any weakening of the
conditions attached to precautionary aid from the Eurozone’s bailout
fund.
Precautionary aid from the European Stability Mechanism through a
so-called Enhanced Conditions Credit Line (ECCL) “is very much linked
with the OMT, so it should not be watered down,” Constancio said.
The ECCL has been designed to appeal to governments that could
benefit from the ECB’s OMT programme of secondary market bond purchases
by offering a credit line with conditions based largely on existing
commitments rather than new targets.
The ECB vice president made his comments in a discussion with EU
finance ministers about economic and fiscal oversight rules, known as
the ‘two pack’ being finalized in negotiations between EU government
representatives and the European Parliament.
Approval of the rules, which would give the European Commission
broad powers to intervene in national budget plans has been held up for
months as governments resist the European Parliament’s attempt to link
it to other ideas, including the possibility of jointly backed Eurozone
bond issuance.
EU Economic and Monetary Affairs Commissioner Olli Rehn urged the
two sides to conclude their talks, warning that the Eurozone could not
complete its new structure “until we have the concrete foundations” that
the proposals were designed to achieve.
–Brussels Newsroom, +324-952-28374; pkoh@mni-news.com
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