30 Oct 2008

A call for a European Financial Stability Fund

Stefano Micossi / Daniel Gros

Download Publication


As Europe faces the worst economic and financial crisis since World War II, the usual decision-making mechanisms are clearly overwhelmed. This commentary asserts that Europe needs action on a scale that can only be decided at the highest political level, namely the formation of a massive European Financial Stability Fund (EFSF) to issue bonds on the international market with the explicit guarantee of member states.