A European monetary fund is born

With the decisions taken in Brussels the EFSF bailout fund has finally been turned into a European monetary fund, writes the left-liberal Frankfurter Rundschau approvingly: "An institution that goes a good way towards correcting the structural defect of the monetary union, a common currency without a political union. This is the sensation of the meeting. ... The euro countries have landed themselves with a foreign currency risk. Strictly speaking it makes no difference whether Italy or Germany owe money in euros or in dollars. The no-bail-out clause pushed through by Germany which prevents a country from being held liable for another makes the euro a foreign currency for everyone. ... This is where the European monetary fund comes into play. It is the fire brigade that can step in to provide the foreign currency the euro in emergencies. It is a bulwark against speculation. It is a guarantee that the Eurozone countries will jointly support if not each other, then at least the euro - and therefore each other indirectly, of course."

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