By Martin Banks - 9th March 2010
European commission president José Manuel Barroso says the Brussels executive is working on possible plans for the creation of a European Monetary Fund (EMF).
Speaking in the European parliament on Tuesday, in Strasbourg he cautioned, however, that he still sees an EMF as a "long-term" goal.
Such a move, he also told MEPs, might require treaty changes.
Barroso was responding to a question from ALDE group leader Guy Verhofstadt about the possibility of an EMF being created.
The commission president said it was "German proposal" which had been put forward recently "without any further details."
The creation of an EMF is supposed to help the 16-nation eurozone prevent and tackle future fiscal crises.
The idea of such a fund was revived earlier this month in response to the financial woes of Greece.
The fund proposed would have three main goals, surveillance of eurozone economies independent from political influence, management of crises within the eurozone and a mechanism allowing for the orderly default of a member state.
But while German chancellor Angela Merkel cautiously backed the idea on Monday, Barroso told members, "This would not solve the present Greek financial crisis."
Turning to the crisis in Greece, Barroso also said the commission was "satisfied" with the measures recently announced by Athens.
"These are designed to reduce the budget deficit in Greece. At the same time, we are trying to safeguard the economic security of the eurozone," he said.
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