ESM

The European Stability Mechanism (ESM) was set up as an international financial institution by the euro area Member States to help euro area countries in severe financial distress... In this role, the ESM is the successor to the European Financial Stability Facility (EFSF), a temporary institution created in 2010. Both institutions played a crucial role in preserving the integrity of the euro area during the euro debt crisis, by providing a total of 295 billion in loans to five countries (Ireland, Portugal, Greece, Spain, and Cyprus). As part of their ESM/EFSF programmes, these countries implemented reforms to address the weaknesses that led to economic and financial problems... The ESM's mission is to enable the countries of the euro area to avoid and overcome financial crises and to maintain long-term financial stability and prosperity. ESM can provide financial assistance to euro area countries experiencing or threatened by severe financing problems. This assistance is granted..

Also known as: European Stability Mechanism

Primary location: Luxembourg