Considerations on COM(2010)2010 - European financial stabilization mechanism - Main contents
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| dossier | COM(2010)2010 - European financial stabilization mechanism. |
|---|---|
| document | COM(2010)2010  |
| date | May 11, 2010 |
| (2) | Such difficulties may be caused by a serious deterioration in the international economic and financial environment. |
| (3) | The unprecedented global financial crisis and economic downturn that have hit the world over the last two years have seriously damaged economic growth and financial stability and provoked a strong deterioration in the deficit and debt positions of the Member States. |
| (4) | The deepening of the financial crisis has led to a severe deterioration of the borrowing conditions of several Member States beyond what can be explained by economic fundamentals. At this point, this situation, if not addressed as a matter of urgency, could present a serious threat to the financial stability of the European Union as a whole. |
| (5) | In order to address this exceptional situation beyond the control of the Member States, it appears necessary to put in place immediately a Union stabilisation mechanism to preserve financial stability in the European Union. Such a mechanism should allow the Union to respond in a coordinated, rapid and effective manner to acute difficulties in a particular Member State. Its activation will be in the context of a joint EU/International Monetary Fund (IMF) support. |
| (6) | Given their particular financial implications, the decisions to grant Union financial assistance pursuant to this Regulation require the exercise of implementing powers, which should be conferred on the Council. |
| (7) | Strong economic policy conditions should be imposed in case of activation of this mechanism with a view to preserving the sustainability of the public finances of the beneficiary Member State and restoring its capacity to finance itself on the financial markets. |
| (8) | The Commission should regularly review whether the exceptional circumstances threatening the financial stability of the European Union as a whole still exist. |
| (9) | The existing facility providing medium-term financial assistance for non-euro-area Member States, as established by Council Regulation (EC) No 332/2002 (1), should remain in place, |