The creation of a European Monetary Fund is being planned by Germany and France, two of the leading countries in the eurozone, a senior German politician has revealed.
Wolfgang Schauble, the German finance minister told Welt Am Sonntag that the introduction of such a body would be closely modeled on the International Monetary Fund (IMF) – but would not be a competitor to it.
"We do need an institution for the internal equilibrium of the eurozone that would have at its disposal both the experience of the IMF, and comparable intervention mechanisms," he stated.
It is hoped that such a body will help prevent a repeat of the current instability occurring in the eurozone that is being created by the ongoing economic crisis in Greece.
Last month, the Greek government announced its third austerity package in as many months as it seeks to cut its debts.
Public sector workers have been given pay cuts while tax on goods such as fuel and alcohol has risen.
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