Memo: European Stability Mechanism (ESM) – Q&A

A new permanent crisis mechanism, the European Stability Mechanism (ESM), will be set up in the euro area as of mid-2013. Following a proposal by the European Commission, this was agreed by the euro area Ministers of Finance on 28 November 2010. This agreement will be reflected in the proposal for an amendment to the Treaty that will be submitted by President Herman Van Rompuy to the European Council in December 2010.