Keuschnigg: „Raising ESM for Italy and Spain“

More+Comment ♦ Published: June 4, 2012; 16:47 ♦ (Vindobona)

Christian Keuschnigg, director of the Austrian Institute of Advanced Studies (IHS) argues for raising ESM funds to € 1,000bn.

Keuschnigg: „Raising ESM for Italy and Spain“ / Picture: © Institut für Höhere Studien - Institute for Advanced Studies

Keuschnigg thinks that the European Stability Mechanism would be too small to manage the funding of countries like Spain and Italy. Instead of issuing Eurobonds, the ESM should provide capital for financially stricken countries. Loans will be only granted to those countries which initate reforms. The increase would be necessary to prevent other solutions like the intervention by the…