European version of the IMF being considered
As a result of the Greek debt crisis, the euro zone may get its own version of the International Monetary Fund (IMF), the EU said today.
The proposed institution, which could be known as the European Monetary Fund (EMF), is being considered to prevent a repeat crisis but would not be set up to organise a bailout for Greece.
Spokesperson Amadues Altafaj Tardio said: “The idea is that Greece must not happen again and we must reinforce economic policy coordination. That is a priority.”
The IMF is an international organisation that oversees the global financial system and strives to improve the economies of its member countries.
Meanwhile, full details of the EMF, and how the 16-member euro zone would fund it, is expected by early June.
In the meantime, the proposal comes as Portugal has announced a series of new austerity measures as it seeks to avoid a debt crisis like the one in Greece.
Portugal said welfare benefits are to be slashed, tax breaks scrapped and a new tax rate of 45% introduced for people with an income of more than £135,000 a year.
Portugal is seeking to cut its public deficit from 8.3% to 2.8% of GDP.
However, the tough austerity measures announced in Greece sparked outrage and led to two million workers staging a nationwide strike last month.
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