General Stabilization Function

Instead it intends
to make a proposal by May 2018 for a stabilization function within the
general EU budget which is supposed to help maintain investment levels in
the case of an asymmetric shock. While the COM refrains from putting a
number to it, it refers to estimates that such a capacity should reach 1% of
GDP to be meaningful. Without conditionality, the use of this funds should
be subject to clearly defined eligibility criteria.

Apart from the controversial
debate on the need for such a stabilization function, comments from a
number of member states on such a tool have been quite critical over the
past. In presenting the proposal on Wednesday, Budgetary Commissioner
Oettinger already admitted that he sees a low preparedness by member
states to help raise the funds for such a stabilization line.