Why nobody wants more money from the euro crisis fund


Olaf Scholz after the meeting of the European finance ministers.
Image: Imago

The Eurogroup has formally strengthened the crisis fund. But the former rescue package is no longer unchallenged, there is criticism of the structure. Some want to abolish it, some want to “reinvent” it.

Dhe decision of the Eurogroup on Monday evening seems a little out of date: The euro crisis fund ESM is getting more powers. The fund, which saved several euro states from over-indebtedness during the years of the euro crisis, played almost no role in the past few months despite the worsening of the corona crisis.

So far, no euro country wants to make use of the ESM credit lines agreed in the spring, which could be used to finance health expenditure to combat the pandemic. Because there is an attractive alternative: the “Reconstruction Fund” decided by the EU Commission in the summer. The recipient countries do not have to repay the money from the fund. The ongoing dispute over this new fund and the new EU budget is bypassing the ESM.

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