GERMANY has been blasted over plans to use Brexit to further the creation of a European Monetary Fund (EMF) which have been branded a “poisonous gift for European democracy”.
Outgoing finance minister Wolfgang Schauble presented a “non-paper” at his final meeting of the Eurogroup economies in which he laid out Berlin’s vision for the future of the eurozone.
It includes handing more powers to the current European Stability Mechanism (ESM) – a bailout fund used in times of emergency – which could eventually morph into a full euro budget.
But the plans fall well short of the kind of federalist dream envisaged by French president Emmanuel Macron, who wants a complete eurozone treasury and finance minister to be created.
The proposals put forward by Mr Schauble, who is being shunted out of the treasury following Angela Merkel’s below-par election result, are also unlikely to please many Southern European states.