The executive director of the European Stability Mechanism (ESM), Klaus Regling, on Monday 24 January highlighted the possible evolution of the euro area’s permanent rescue fund in the context of a reform of the European economic governance framework.
The ESM could in particular set up “a central fiscal stabilisation capacity” to help a euro area country in difficulty, he told a conference on the reform of fiscal rules organised remotely by the ESM. In his view, the Covid-19 pandemic...