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ECB’s Nowotny backs turning ESM into IMF-styled rescue fund

ECB policy maker Ewald Nowotny said on Friday he backed turning the European Stability Mechanism (ESM) into a IMF-styled lender.

“(The) ESM might turn into a ‘European Monetary Fund’, and I think that makes a lot of sense,” said Nowotny, one of the longest-standing members of the European Central Bank’s governing council, saying this would show that “a rich part of the world is able to solve imbalances by themselves.”

Talking about Britain, Nowotny said the decision to leave the European Union meant the country would no longer be part of the integration dynamic across the European Union.

“You can survive as a single country, but one has to be aware it is costly and in a multilateral world, to have a standalone strategy is something a small country can do, like Switzerland,” he said, speaking at an event organised by the policy think-tank OMFIF.

“But in the case of Switzerland it means a lot of additional measures,” he added.
Source: Reuters (Reporting by Karin Strohecker and Marc Jones)

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