The Federal government wants to move walls, Euro-house, new fire protection. The Ministry of Finance and the Chancellery have agreed on the outline of a new line of credit, to allow Euro-member States, severe economic shocks in a buffer, without the need of in exchange for tough reform measures to undertake – what to provide in the past, the rules for aid from the rescue Fund, the ESM. A condition for the new as a precautionary measure, granted a credit line should be healthy-economic environment.

Manfred Schäfers

economic correspondent in Berlin.

F. A. Z.

The Federal government have agreed on common positions on key Parts of a Reform of the European stability mechanism, wrote to the Parliamentary Finance state Secretary Bettina Hagedorn (SPD), Chairman of the budget Committee, Peter Boehringer (AfD). In the equipment, the position papers are to be found in the English language.

Even countries with healthy economic conditions could pose a threat to serious asymmetric shocks, which cannot be their political control, says the paper, with the note of “VS – for official use Only”, the Frankfurter Allgemeine Zeitung. Against this Background, a special fire-protection walls may be necessary. This could be a precautionary credit line (a”Precautionary Conditioned Credit Line, PCCL”), the financial politically and economically sound countries from the risk of a creeping loss of protected to be able to on the financial market with loans to Finance. Also in the case of liquidity bottlenecks, the new help should be taken.

According to the working paper should be linked as a precautionary measure, granted a credit line to certain conditions. The countries which wanted to benefit from it, would have to comply with European budgetary rules. The borrowing must be less than three percent of the gross domestic product. The share of government debt to gross domestic product must not exceed 60 percent. If this ceiling will be exceeded from the Treaty of Maastricht the protection of the Euro, would have to prove to the country that it had reduced its public debt in the three years before applying for the loan by at least 0.5 percentage points annually.