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Germany rejects idea of ESM as an investment fund

  • Suddeutsche Zeitung reported on Saturday that Jean-Claude Juncker and his team were actively considering turning the unused capacity of the ECB into a vehicle to fund Juncker’s investment programme;
  • the concrete idea is to put some of the ESM funds into an investment vehicle to be managed by the European Investment Bank;
  • an EIB task force has been set-up to identify possible investment projects;
  • the idea met with immediate rejection by Wolfgang Schauble, who said it is not backed by the ESM treaty;
  • Frankfurter Allgemeine reports that Juncker is having difficulties in getting his €300bn investments together;
  • Werner Musler writes in a comment that such a proposal would damage the creditworthiness of the ESM and reduce its capacity to act;

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