Nearly $12 million of the fund's original $17.5 million was paid out before the sorting of notes even began.(65) In vain the treasurer requested voluntary contributions to the redemption fund
equal to an additional 5 percent of circulation.
The Commission agrees to set up an expert group "to deepen the analysis on the possible merits, risks, requirements and obstacles" of setting up a redemption fund
To break the deadlock, the Commission informally agreed to set up an expert group to analyse the legal feasibility of a European Redemption Fund
- to part-mutualise government debt - and short-term eurobills.
The last hurdle: the S&D, ALDE and Greens-EFA groups in the European Parliament demand guarantees from the Commission that the mutualisation of debt agenda will move forward.aTo break the deadlock and get the Liberals on board, it is looking more and more likely that aastudy group of experts to analyse the legal feasibility of a European Redemption Fund
- to part-mutualise government debt - and short-term eurobills will be set up.aThis option is the only one on the table, according to one source following the talks.
The European Parliament is hammering on about the need to set up a temporary redemption fund
to reduce the member states' debt pile.
Austrian Chancellor Werner Faymann has put his weight behind the setting up of a redemption fund
at European level to reduce government debt levels.
These comments were no doubt aimed at the leaders of the S&D, ALDE and Greens-EFA groups in the European Parliament, which request commitments towards the setting up of a redemption fund
that would part-mutualise government debt and the issuance of short-term eurobills.
The content of its first draft in December, which simply stated that setting up a redemption fund
requires a treaty change and can therefore only be a medium-term objective, was deemed insufficient.
In the Commission's opinion, that is the case for setting up a European Redemption Fund
, a proper fiscal capacity and short-term eurobills.
Reacting to the European Commission's blueprint to reinforce the Economic and Monetary Union (EMU), ALDE leader Guy Verhofstadt (Belgium) said it would be "a big mistake" to wait five years to have a treaty change to create a European Redemption Fund
. He suggests setting up a temporary one outside the treaties and incorporating it in the Union's framework at a later stage.
In a blueprint, European Commission President Jose Manuel Barroso suggests that a European Redemption Fund
, a proper fiscal capacity and short-term eurobills - all requiring treaty changes - should be created in the medium term to reinforce the Economic and Monetary Union (EMU).