The commission wants the Fund to restrict itself to short-term loans for economies in crisis at higher-than-market interest rates, rather than long-term concessional credit to cover balance-of-payments deficits.
U.S. money-market funds that provide short-term credit to European banks will suffer major losses (about one third of their bank loans are in Europe.) And the operations of big U.S. companies that hold European bonds, or rely on short-term credit, will screech to a halt.