The European Commission will propose on December 6 the transformation of the European Stability Mechanism (ESM) into a European version of the International Monetary Fund (IMF), El Pais reported on Tuesday.

With an initial capital of €500bn and a capital boost of a further 20%. As a lender of last resort, the ESM will extend liquidity to Eurozone member states experiencing a sovereign debt crisis in exchange for liquidity.

The 47-page proposal, the ESM’s transformation is envisioned as one of ...