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What is even less clear is why Gros and Mayer would want to reinvent the wheel by creating a European Monetary Fund, when one has the International Monetary Fund that already has the expertise to impose the appropriate conditionality on lending to wayward countries like Greece.
On the same day, the Euro area Heads of State or Government Summit pointed out that when an effective single supervisory mechanism is established involving the ECB for banks in the euro area, the ESM could, following a regular decision, have the possibility to recapitalize banks directly which would rely on appropriate conditionality, including compliance with state aid rules.
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"A necessary condition for outright monetary transactions is strict and effective conditionality attached to an appropriate European financial stability facility/European stability mechanism [bailout]," Draghi said.
In most cases, actors need to use conditionality and aim it at the appropriate decision makers.
This is used to assure managers that conditionality referrals are being done appropriately.
For starters, it should focus on maintaining appropriate monetary conditions and get out of the business of negotiating policy conditionality with governments.
Nor will conditionality.
Conditionality will be personalised.
Forget "light" forms of conditionality.
conditionality and unpopular austerity measures.
That is the reason for having conditionality.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com