THE EUROPEAN Stability Mechanism (ESM) may be viewed as something like a European Monetary Fund, according to Slovak Finance Minister Peter Kažimír, speaking in Luxembourg on October 8 after the inaugural meeting of the ESM, attended by 17 ministers of the eurozone.
“Time has shown that old institutions alone do not suffice for us ... and that we need something like a European Monetary Fund (modelled after the International Monetary Fund),” Kažimír said, as quoted by the TASR newswire. “A year ago, this idea seemed unrealistic, but today it has become a reality.”
Slovakia became an official member of the mechanism, but its participation cost the previous prime minister, Iveta Radičová, her chair, when her government fell in the process of boosting the EFSF.
“Our task now is to provide the initial capital,” Kažimír said, as quoted by TASR, adding that Slovakia’s part represents €660 million in cash while the total for the 17-member bloc is €80 billion. The first two payments from Slovakia, worth €130 million each, are set to be disbursed by October 12 out of state financial assets.
The minister pointed out that these payments will not burden the deficit of the public finances.
Another three instalments of the subscribed share capital of €396 million in total will be paid during 2013 and 2014.