Hello, my name is Saara. I'd like to ask about the following. We all have to pay to save our common currency, the euro. I'd like to know how we can make sure this isn't pouring money down the drain. With the Greek debt crisis, the whole eurozone has in the end been weakened. The end of the euro presents an incalculable risk and so to avoid bankruptcy the eurozone must be stabilised. Besides the European Central Bank's monetary policy and after strengthening the budget stability pact, the proposed solution is called the ESM, the European Stability Mechanism. Its role is to make loans to states in difficulty with or without the help of the IMF. But states won't be bailed out without conditions. To benefit from the ESM, a state will first have to go to the IMF, while respecting the ECB's independence, and it will have to apply much stricter budgetary rules. But how will the ESM work? The ESM will represent the 17 eurozone members. A director general will be appointed. The Commission and the ECB will be able to be observers if they wish. But ESM members won't have the same weight. The largest shareholder will be Germany with 27% of the capital. The second shareholder will be France, followed by Italy. Malta, the smallest eurozone country, will be the smallest shareholder. After some hesitation, the capital of the ESM was set at 700 billion euros, of which 80 billion will be released at first. The states will fund the ESM directly. The money will serve as a guarantee to raise other sources of capital. These funds could then be made available to a country in difficulty, in return for payment of interest. Only states willing to tackle their problems will be helped. At the request of Germany, all financial aid will be subject to strict conditions. The eurozone will intervene if the country has asked the IMF for help and if it undertakes to reform itself. If the country helped doesn't respect its obligations it will have to pay a fine in addition to its contribution to the ESM, and of course it will not be able to receive any more aid. But who will control the activities of the European Stability Mechanism? MEPs regretted the fact that neither the EP nor national parliaments will have a say in that. They will be informed of ESM decisions, but won't be able to oppose them. Supervision of the ESM will be entrusted to internal and external auditors appointed by the ESM. These inspectors will have powers to examine ESM accounts and to obtain all information on its operations. In case of conflict among the members of the European Stability Mechanism the EU Court of Justice will have the final word.
EuroparlTV video ID: 76df9117-120d-4b79-902c-a07500d8e337
