The weekend’s suggestion from Germany for a European Monetary Fund is extremely confused. Angela Merkel, German chancellor, has just said she supports the idea in principle, but the details need to be worked out. Exactly. I have not been able to find anyone today who can explain what the EMF is supposed to do. It seems a classic solution in search of a problem.
So, I predict the idea of an EMF will go nowhere fast. But as my colleague, Alan Beattie, pointed out in the most thoughtful comment I’ve seen on it today, it’s not the first time the acronym EMF and the word “unbelievable” have been used together.