Finance

Finance

The European Union to create a European Monetary Fund

10 March 2010 09:29 (UTC +04:00)

Baku - APA-Economics. The European Union plans to create a European Monetary Fund to better coordinate the economies of the 16 countries that use the euro and prevent financial debacles such as the Greek debt crisis from undermining the credibility of Europe’s single currency, Associated Press reported.

The European Commission said Monday it was negotiating details with euro zone governments and hopes to wrap up the talks by July 1.

EU officials stressed the aim was not to engineer a quick bailout of Greece "but to draw lessons" from the current financial turmoil. Greece’s troubles follow years of overspending and shoddy statistics-keeping that understated the size of its deficits.

The idea is that Greece must not happen again and we must reinforce economic policy coordination. That is a priority, EU spokesman Amadeu Altafaj Tardio said.

n the Greek debt crisis, Germany and other euro nations have urged Greece not to go to the IMF for a bailout loan. Such a possibility is widely seen as embarrassing in euro zone capitals and damaging to the euro area’s credibility.