The European Commission is also taking a stand against Merkel's plans for a permanent euro crisis fund, as described in her concept of a "European Stability Mechanism" (ESM). The participation of private lenders in losses related to debt restructuring, to which Merkel attaches great importance, is only mentioned peripherally in the concept. The automatic mechanism whereby private lenders would be required to relinquish their claims, as demanded by the Germans, is off the table. According to the document, the affected countries are expected to enter into an "early dialogue" with their creditors, so that the creditors will participate "voluntarily" in debt restructuring measures.
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