If the European Commission, along with France and Germany, persuades the other European Union members to set up the European Monetary Fund (EMF), this decision will not be based upon economical but political necessity (even though the two relate of course). The euro zone is too proud to ask the International Monetary Fund for help, even though the non-EMU members of the Union - Hungary and Romania - already accepted its loans.

What are France and Germany afraid of is not the actual policies of the Fund (they supported it for ages) but the growing power of Brazil and India within the Fund's structures. These development states could weaken the Union through making the life harder for Greece, what could be followed by markets' distrust in the EU. Therefore Brussels wants to solve the financial problems of its member states internally. If the EMF is to become reality, it must be preceded by the Lisbon treaty modification however.

The current status does not allow bailing out the member states. Any modification to the Treaty means a lot of troubles, because, already now some anticipate that the EMF could mean a step closer to the establishment of the European ministry of finance. That is absolutely unacceptable for influential political forces within the nation states and therefore, the EMF, if established, will be delegated limited rights only. The question is whether it will be enough to prevent other weak EU members to follow the Greek path.

Milan Sebo

PHOTO: ISIFA