Buba official warns against tapping ESM for investment
Andreas Dombret criticises plans ‘floated’ by European Commission president
Using funds from the European Stability Mechanism (ESM) to finance investment in infrastructure would "greatly reduce the effectiveness" of the rescue fund, according to the Deutsche Bundesbank's Andreas Dombret.
Dombret, an executive board member of the German central bank, told an audience at the Brookings Institution the objective of the ESM is "to be able to counter severe risks to financial stability" in the eurozone.
"The effectiveness of the ESM is based on the idea of a strong deterrent
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