The European Stability Mechanism is an intergovernmental organization established on September 27, 2012 by the member states of the eurozone to provide financial assistance to countries in the currency union facing severe financing difficulties. Created in the aftermath of the 2008 financial crisis and the European sovereign debt crisis that followed it, the ESM functions as a permanent crisis resolution mechanism, operating under a dedicated treaty that amended the Treaty on the Functioning of the European Union. It is headquartered in Luxembourg City and is owned collectively by all eurozone member states, which subscribe to its capital and can call on its lending instruments when a member faces a genuine risk to its own financial stability.
Facts
Founding Year Founding Date HeadquartersLuxembourg City, Luxembourg 3 Geography
Country or Jurisdiction ServedWikidata Q1130098, property P17 (country). Classification
Institution SubtypeInternational Financial Institution 1 In the Other Atlases
Located In
Also in Geography Atlas: where this subject is located.
Sources
1. Wikidata: European Stability Mechanism
Wikidata Q1130098, class allow-list match (w-wdresolver-0926)View the Source 2. Wikidata
Wikimedia Foundation
3. Wikipedia: European Stability Mechanism
Wikimedia FoundationWikipedia lead paragraph, second sentence (founding date/year)
The European Stability Mechanism (ESM) is an intergovernmental organization located in Luxembourg City, which operates under public international law for all eurozone member states having ratified a special ESM intergovernmental treaty. It was established on 27 September 2012 as a permanent firewall for the eurozone, to safeguard and provide instant access to financial assistance programmes for member states of the eurozone in financial difficulty, with a maximum lending capacity of €500 billion.
Wikipedia lead paragraph, second sentence (founding date/year) [year]
The European Stability Mechanism (ESM) is an intergovernmental organization located in Luxembourg City, which operates under public international law for all eurozone member states having ratified a special ESM intergovernmental treaty. It was established on 27 September 2012 as a permanent firewall for the eurozone, to safeguard and provide instant access to financial assistance programmes for member states of the eurozone in financial difficulty, with a maximum lending capacity of €500 billion.
Wikipedia lead paragraph, first sentence (headquarters)
The European Stability Mechanism (ESM) is an intergovernmental organization located in Luxembourg City, which operates under public international law for all eurozone member states having ratified a special ESM intergovernmental treaty. It was established on 27 September 2012 as a permanent firewall for the eurozone, to safeguard and provide instant access to financial assistance programmes for member states of the eurozone in financial difficulty, with a maximum lending capacity of €500 billion.
View the Source European Stability Mechanism: About the ESM
European Stability MechanismIn Group: Economic Unions and Stability Facilities of Europe and Eurasia, Page textQuote, In Group: Economic Unions and Stability Facilities of Europe and Eurasia, Page text
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.
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