Schäuble calls for tough EMF sanctions / Why Europe’s monetary union faces its biggest crisis

Report of a FT article by Wolfgang Schäuble, Germany's Finance Minister, March 2010 called 'Why Europe’s monetary union faces its biggest crisis'.

He called for a European monetary fund to be backed by tough sanctions to enforce budgetary discipline, with countries failing to comply facing expulsion from the eurozone 'as a last resort'.

He addressed his critics by declaring Greece’s crisis had shown it was 'obvious' that the 16-nation eurozone’s rules were 'incomplete' and unable to deal with situations long thought 'inconceivable'.

His argument comes after days of vigorous debate within Germany, and with other European Union partners, with some questioning the timing of the EMF initiative and others the need for an alternative to the International Monetary Fund.

ESO: Background information: Trichet hints at fund backing http://www.europeansources.info/record/trichet-hints-at-fund-backing/

ESO: Background Information: Merkel warns of hurdles in EMF plan http://www.europeansources.info/record/merkel-warns-of-hurdles-in-emf-plan/

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