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Economy and Finance

European Stability Mechanism (ESM)

ESM’s mission is to provide financial assistance to euro area countries when needed. 

The European Stability Mechanism (ESM) is part of the EU strategy designed to safeguard financial stability in the euro area. Like its predecessor, the temporary European Financial Stability Facility (EFSF), the ESM provides financial assistance to euro area countries experiencing or threatened by financing difficulties.

Pandemic Crisis Support

Based on the Eurogroup report of 9 April 2020, the Commission has prepared a draft  Response Plan template which responds to Articles 13(3) and 14(2) of the ESM Treaty. It includes the standardised terms that would be applicable to all euro area Member States that would access the Pandemic Crisis Support. The template will be customized to each beneficiary Member State, when they request access to the Pandemic Crisis Support. The customisation would only pertain to concrete indications of the costs incurred by the Member State as a result of the COVID-19 crisis.

Draft Template for the Response Plan pursuant to Articles 13(3) and 14(2) ESM Treaty
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(111.1 KB - PDF)
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The documents below present the outcomes of the preliminary assessments conducted by the Commission services - in liaison with the ECB - confirming the eligibility of all the euro area Member States for the proposed Pandemic Crisis Support to be provided by the European Stability Mechanism.

Pandemic Crisis Support - Eligibility assessment
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(226.64 KB - PDF)
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Annex I - Assessment of risks to the financial stability of the euro area
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(331.88 KB - PDF)
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Annex II - Assessment of public debt sustainability and COVID-related financing needs of euro area Member States
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(1.09 MB - PDF)
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Annex III – External sustainability assessment
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(292.1 KB - PDF)
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Annex IV - Assesment of the absence of bank solvency problems that would pose systemic threats to the stability of the euro area banking system
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(342.73 KB - PDF)
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Letter from Executive Vice-President Dombrovskis and Commissioner Gentiloni to Eurogroup President Centeno clarifying how the Commission intends to carry out surveillance in the framework of the ESM’s pandemic crisis support.
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(160 KB - PDF)
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Related documents

Joint Staffs’ Working Document on public debt sustainability and repayment capacity analysis in the context of ESM financial assistance (applicable as of entry into force of the Agreement Amending the ESM Treaty as approved in the Eurogroup on 14/06/2019)
English
(1.07 MB - PDF)
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Memorandum of Understanding on the working relations between the Commission and the European Stability Mechanism
English
(208.98 KB - PDF)
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Joint position of the European Commission and the European Stability Mechanism on their future cooperation ahead of the Euro Summit of 14 December 2018
English
(253.06 KB - PDF)
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