Germany seeks role for ESM in future crises

Germany’s Bundesbank has proposed reforms to streamline Europe’s response to future fiscal crises.

The bank suggests turning the European Stability Mechanism (ESM) into the region’s leading fiscal authority with competences encompassing those currently carried out by the European Commission and the European Central Bank.

It also wants a change in the terms of new government debt issues to allow easier restructuring and a maturity extension should the country enter an aid programme.