2023-06-17 02:24:57
One euro coin. Image: Stockfotos-MG/Zoonar/picture alliance
The International Monetary Fund is in favor of the EU exploring the creation of a digital euro to “not be left behind” with respect to other powers and asked it to be “cautious and careful” when developing it.
The International Monetary Fund (IMF) was shown this Friday (06.16.2023) in favor of the European Union exploring the creation of a digital euro to “not be left behind” with respect to other powers and asked it to be “cautious and careful » when developing it.
“The reality is that the EU cannot stay out of what is happening in the rest of the world. It is good that he is embarking on this journey, “said the managing director of the IMF fund, Kristalina Georgieva, at a press conference in Luxembourg, where she participates in meetings of European economy and finance ministers.
The meeting on Thursday discussed the possible creation of a digital euro as a means of payment complementary to cash, an option that the European Central Bank has been studying since 2021, on the eve of the European Commission presenting a proposal at the end of the month to establish the legislative framework that would be necessary if the EU finally decided to implement it.
Likewise, the IMF asked the countries of the European Union to reach an agreement soon on their fiscal rules to create a sustainability framework in the medium term, and encouraged all, especially the most indebted, to make greater efforts to reduce their deficit.
Kristalina Georgieva presented in Luxembourg the report of the Fund’s conclusions on its mission in the euro area, which foresees a “modest” recovery of its economy both this year and in 2024.
The text warns, however, that inflation continues to be high and is still far from its target, which is why more interest rate hikes will be necessary.
One of the first requests made by the IMF in its report is the call for fiscal consolidation to “relieve” inflationary pressures but also to “rebuild” the European fiscal space.
“A quick agreement on the reform of the fiscal and economic governance framework would help fiscal sustainability in the long term,” the text says.
At a press conference, the managing director of the IMF influenced this idea and celebrated that “discussions are now advancing to the territory of negotiation”, while calling for a “quick” agreement so that the EU has a “solid framework” that allows “debt reduction in a countercyclical rather than a procyclical way”.
“We support the proposal of the European Commission (…) It will help to have a more countercyclical (fiscal) position, so we support the direction of the proposal,” Georgieva summarized.
The IMF document is known on this day in which the Twenty-seven will have in Luxembourg the first debate at a political level on the reform of the Stability and Growth Pact since the European Commission presented its legislative project.
Georgieva warned that the economic activity of the euro zone countries is going to recover “very gradually” and also considered that inflation remains very high, in addition to stressing that uncertainty remains high.
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