Euro Zone Rescue Fund Launches

LUXEMBOURG, KOMPAS.com - The euro zone on Monday (10/08/2012) in Luxembourg introduced a body that has been long-awaited. The agency called the European Stability Mechanism (ESM), and aims to give bail to the 17 members of the euro zone, the euro single currency users.

Finance ministers from 17 countries gathered in Luxembourg on Monday, ten days ahead of a summit of the 27 European Union countries in Brussels, Belgium.

ESM will be officially launched at the EU summit. The agency has not operated since the ministers are still signed the legal aspects.

But the ESM will have a working capital of 200 billion euros. Adding funds, that the funds will be transferred sebayak 150 billion euro, which is now at a temporary relief agency, the European Financial Stability Facility (EFSF).

"This is another important step with equal ability the International Monetary Fund (IMF)," EU Commission President Jose Manuel Barroso said on Monday.

However, the agency is expected to continue to require a strict policy when deciding to bailout insolvent nations.
Editor: Robert Adhi Ksp
source: kompas.com

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