Brussels, 04/01/2001 (Agence Europe) - The EU Council has asked the European Commission to come forward with a proposal for amendment of the June 1998 regulation on the sole mechanism for medium-term balance of payments financial support for Member States, to reflect the Greek exit from this mechanism further to its entry in the euro area.
Indeed, in conclusions adopted in December, the Council observes that, "given the start-up of stage three of Economic and Monetary Union, the mechanism in question applies solely to Member States that have not adopted the euro". It also considers the mechanism "still adapted, in its principle and its practical arrangements, to the needs that led to its creation, in particular given future accessions". The Council, which "agrees that loans granted in the framework of this mechanism must be financed exclusively through market capital", considers that the mechanism's ceiling should be brought down from 16 to 12 billion euros and invites the Commission to submit a proposal along these lines.