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European Financial Stability Facility (EFSF) / European Stability Mechanism (ESM)



The European Financial Stability Facility (EFSF) was created by the euro area Member States following the decisions taken on 9 May 2010 within the framework of the ECOFIN Council. The EFSF’s mandate is to safeguard financial stability in Europe by providing financial assistance to euro area Member States. (Further information)

On 9 May 2010, the EU's finance ministers also adopted a regulation establishing a European Stability Mechanism (ESM) with a total volume of up to €500 billion. The mechanism is part of a comprehensive package of measures to redress the financial situation in Europe. (Further information) The ESM was inaugurated on 8 October 2012.

ESM Fact Sheet, 4 October 2012

ESM website

Signing of the ESM treaty, published on 13.6.13 - video

FAQ on the main features of the future ESM direct bank recapitalisation instrument, 28.6.13

ECON-Committee Study Note: European Stability Mechanism (ESM) Main Features, Oversight and Accountability, 14.2.14






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