|Author (Corporate)||European Commission|
|Series Details||COM (2018) 387|
Legislative proposal adopted by the European Commission setting up a European Investment Stabilisation Function (EISF), which aims to complement the existing instruments at national and EU level to absorb large asymetric shocks in the Eurozone and countries participating in the European Exchange Rate Mechanism (ERM II).
The draft law was adopted by the Commission on 31 May 2018. Under this proposal, the Commission is empowered to grant financial assistance to Member States which are faced with a large asymmetric shock, by contracting borrowings on the financial markets or with financial actors, with a view to on-lend such proceeds in support of the Member State concerned in maintaining eligible public investment. Subject to strict criteria of sound macroeconomic and fiscal policies, loans of up to €30 billion could be rapidly mobilised, together with an interest rate subsidy to cover their cost.
The proposal was put forward in the framework of the discussions on the Multiannual Financial Framework (MFF) for the period 2021-2027. It is also part of the process to strengthen and deepen the EU's Economic and Monetary Union.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Economic and Monetary Union [EMU]|
|International Organisations||European Union [EU]|