European Investment Stabilisation Function (EISF)
The idea behind the Commission's proposed European Investment Stabilisation Function is to use dedicated financial means from the EU budget to help Member States stabilise their economies in the event of a major asymmetric shock. The Commission would borrow on the financial markets and then lend to the country concerned, which would use the money to finance public investment. Once the crisis was over, the Member State would reimburse the debt. The Commission hopes the other Member States would agree to subsidise the interest payments incurred. The function would be limited to euro-area countries, but those that have entered the exchange rate mechanism II (ERM II) might also benefit. The lending would be quasi automatic once statistical data showed an exceptional and steep rise in unemployment. The dossier has met with considerable opposition at Council level.
Briefing
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- cooperation policy
- coordination of EMU policies
- documentation
- economic and social cohesion
- economic conditions
- economic policy
- economic stabilisation
- ECONOMICS
- EDUCATION AND COMMUNICATIONS
- EU aid
- EU investment
- Eurogroup (euro area)
- European construction
- EUROPEAN UNION
- European Union law
- FINANCE
- financial aid
- financing and investment
- INTERNATIONAL RELATIONS
- monetary economics
- monetary relations
- proposal (EU)
- public finance
- public finance and budget policy
- public investment
- report