P.M. BRIEFING : No Automatic Bailout, EC Warns
Countries that mismanage their economies would receive no automatic “bailing out” by the European Community under terms of a report on economic and monetary union released today.
“If a country is pursuing the wrong economic policy they will have to pay the price,” said Henning Christophersen, who heads a European Commission panel on the matter.
The report also called for a single European currency and a central European bank, or “EuroFed,” modeled after the German Bundesbank or the U.S. Federal Reserve System, with an independent board of governors appointed for lengthy terms.
The report by Christophersen, the EC commissioner for economic and financial affairs, is designed to form a framework for an intergovernmental conference on economic and monetary union to be held by the end of the year.
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