European Stability Mechanism

E17556

The European Stability Mechanism is an intergovernmental financial institution of eurozone countries that provides financial assistance to member states in economic or financial distress to safeguard stability in the monetary union.


Statements (66)
Predicate Object
instanceOf eurozone institution
intergovernmental financial institution
international financial institution
treaty-based organization
cameIntoForce 2012
capitalStructure authorised capital stock
capitalType callable capital
paid-in capital
country Luxembourg
currency euro
foundedBy euro area member states
governedBy Board of Directors
Board of Governors
hasInstrument bank recapitalisation instruments
direct bank recapitalisation (now discontinued for new cases)
indirect bank recapitalisation
loans
precautionary financial assistance
primary market purchases of sovereign bonds
secondary market purchases of sovereign bonds
hasManagingDirector Klaus Regling
hasMember Austria
Belgium
Croatia
Cyprus
Estonia
Finland
France
Germany
Greece
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Portugal
Slovakia
Slovenia
Spain
headedBy Managing Director
language English
French
German
legalBasis Treaty Establishing the European Stability Mechanism
locatedIn Luxembourg City
memberOf euro area
objective ensure financial stability of the monetary union
partOf euro area crisis management framework
predecessor European Financial Stabilisation Mechanism
European Financial Stability Facility
purpose provide financial assistance to euro area member states in distress
safeguard financial stability of the euro area
support countries experiencing severe financing problems
regionServed European Union
euro area
replaced temporary crisis resolution mechanisms of the euro area
shortName ESM
supervisedBy euro area finance ministers
treatySigned 2012
votingSystem weighted voting based on capital subscription
website https://www.esm.europa.eu
worksWith European Central Bank
European Commission
International Monetary Fund


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