BRIEF: IMF Says New EU Fiscal Rules To Help Contain Volatility

IMF European Department Director Alfred Kammer said on Thursday that the EU's new fiscal regime should provide confidence that market volatility such as that following the announcement of French elections can be better managed, noting the greater national ownership of debt-reduction plans and the long-term nature of the plans.  

"That still leaves political risks. It relies on successive govts to live up these commitments. Plans may change over time but it is a strong framework in terms of starting and focusing on the ownership of countries of their national plans,” he said. (See MNI: Multi-Year Fiscal Plans For EU States Delayed Until Autumn- Officials)

The financial market reaction to the surge of the French far-right in the recent EU elections as well as the surprise call by President Emmanuel Macron for new National Assembly elections to be held has been contained, IMF Managing Director Kristalina Georgieva said.