New head of the Eurozone Fund
2022.11.25 14:40
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New head of the Eurozone Fund
Budrigannews.com – The European Stability Mechanism (ESM), the bailout fund for the euro zone, will be headed by Pierre Gramegna, a former finance minister from Luxembourg. He will succeed Germany’s Klaus Regling, who resigned last month.
Paschal Donohoe, chairman of the euro zone finance ministers, tweeted, “The ESM Board of Governors just appointed Pierre Gramegna to become the new ESM Managing Director as of 1 December by broad consensus.”
In order to lend to governments in the euro zone that were cut off from markets, the ESM was established in 2012 during the sovereign debt crisis.It can also lend to recapitalize banks and provide precautionary credit and has a war chest of 500 billion euros (520 billion US dollars).
After several previous attempts to select Regling’s successor failed to garner the required majority support for any of the three candidates at the time, Gramegna was the only candidate.
According to a senior official from the euro zone, Italy and France, which had previously either opposed or refused to support the Luxembourger, had changed their minds.
Germany has supported Gramegna from the beginning, believing that due to his reputation for prudent financial policy, he would send a strong signal to capital markets.
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