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ESM chief expects talks next year on more crisis-fighting tools
June 20, 2017 / 11:25 AM / 6 months ago

ESM chief expects talks next year on more crisis-fighting tools

LONDON, June 20 (Reuters) - The head of the euro zone’s bailout fund said on Tuesday that he expects discussions next year on more mechanisms to help member states in distress, possibly mirroring schemes used in the United States.

Klaus Regling, managing director of the euro zone bailout fund -- the European Stability Mechanism -- said that a big euro area budget for permanent transfers was not needed, but that the capacity to help countries hit by asymmetric shocks was lacking.

“The United States, for example, have several mechanisms to deal with particular shocks such as...rainy day funds...an unemployment benefit system where states can draw on the (U.S.) Treasury,” Regling told a Euromoney bond conference.

“These are the mechanisms that one should look at and see what we can learn...I wouldn’t be surprised if discussions come later in the year next year.” (Reporting by Dhara Ranasinghe; Editing by John Geddie)

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