Public Hearing of the Finance Committee on the Restructuring Fund Transfer Act
On October 29, 2024, at 11:47 AM, the Finance Committee held a public hearing on the Restructuring Fund Transfer Act. The Restructuring Fund is a €750 billion fund established by the European Union to support member states in recovering from the economic consequences of the COVID-19 pandemic. The Restructuring Fund Transfer Act would transfer €30 billion from the Restructuring Fund to the European Stability Mechanism (ESM), which would then be used to provide loans to member states.
The Finance Committee heard testimony from a number of experts on the Restructuring Fund and the ESM. The experts discussed the economic impact of the pandemic, the need for the Restructuring Fund, and the risks and benefits of transferring funds to the ESM.
One of the witnesses, Mr. Jens Weidmann, the President of the Deutsche Bundesbank, expressed concerns about the transfer of funds to the ESM. He argued that the ESM is not subject to the same level of democratic accountability as the European Union and that the transfer of funds could increase the risk of moral hazard.
Another witness, Ms. Christine Lagarde, the President of the European Central Bank, supported the transfer of funds to the ESM. She argued that the ESM is a proven and effective mechanism for providing financial assistance to member states and that the transfer of funds would help to ensure that the Restructuring Fund is used effectively.
The Finance Committee is expected to vote on the Restructuring Fund Transfer Act in the coming weeks. The vote is likely to be close, with the outcome depending on the views of the committee members on the risks and benefits of the transfer of funds.
Additional Information
- The Restructuring Fund is a €750 billion fund established by the European Union to support member states in recovering from the economic consequences of the COVID-19 pandemic.
- The Restructuring Fund Transfer Act would transfer €30 billion from the Restructuring Fund to the European Stability Mechanism (ESM), which would then be used to provide loans to member states.
- The Finance Committee held a public hearing on the Restructuring Fund Transfer Act on October 29, 2024.
- The Finance Committee is expected to vote on the Restructuring Fund Transfer Act in the coming weeks.
Öffentliche Anhörung des Finanzausschusses zum Restrukturierungsfonds-Übertragungsgesetz
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