EU Economic and Financial Affairs Council

Treasury written question – answered at on 28 January 2013.

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Photo of Jacob Rees-Mogg Jacob Rees-Mogg Conservative, North East Somerset

To ask the Chancellor of the Exchequer pursuant to the written ministerial statement of 11 December 2012, Official Report, columns 18-20WS, on Ecofin, relating to economic governance, for what reasons the Government has reiterated its position in respect of any new commitments from the European Financial Stabilisation Mechanism; and whether he has received any recent reports that other member states have changed their position in this respect.

Photo of Greg Clark Greg Clark The Financial Secretary to the Treasury

The “two-pack” of draft regulations—aimed at improving economic governance in the euro area—contains provisions for enhanced surveillance when euro area member states request financial assistance. It refers to possible requests from a range of financial instruments, including the European Financial Stabilisation Mechanism (EFSM). While there is agreement that there should be no new commitments from the EFSM now that the European Stability Mechanism (ESM) has been established, the EFSM is referred to in the “two-pack” because the regulation which establishes the EFSM is still in place, and EFSM programmes for Ireland and Portugal are still active.

Therefore, for the avoidance of any doubt, the Government recalled the commitment made by all member states that there should be no new commitments from the EFSM once the European Stability Mechanism (ESM) was established. The Government has not received any reports that other member states have changed their position and expects all member states to honour that commitment.

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