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ESM

The European Stability Mechanism (ESM) is an agency within the European Union that provides financial assistance to eurozone member states and banks. It is the successor to the European Financial Stability Facility.

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The Irish Prime Minister Enda Kenny meets with Angela Merkel in Berlin. (Photo: Michael Gottschalk/dapd)

Irish in the spotlight

Germany's chancellor praised Ireland's frugality as Prime Minister Kenny receives a private award.
November 2, 2012
Front row left to right, European Council President Herman Van Rompuy, Lithuanian President Dalia Grybauskaite, French President Francois Hollande, European Commission President Jose Manuel Barroso and Greek Prime Minister Antonis Samaras. Back row left to right, Slovenian Prime Minister Janez Jansa, Portugal's Prime Minister Pedro Passos Coelho, German Chancellor Angela Merkel, Finland's Prime Minister Jyrki Tapani Katainen, Austria's Chancellor Werner Faymann, Bulgaria's Prime Minister Boyko Borissov pose during a group photo opportunity at an EU summit in Brussels on Thursday, Oct. 18, 2012. European leaders are gathering again in Brussels to discuss how to save the euro currency from collapse and support countries facing too much debt and not enough growth. (Foto:Remy de la Mauviniere/AP/dapd)

Eurozone bank watchdog in 2013

At a summit of EU leaders in Brussels, a compromise has been reached on the creation of a new post for a banking supervisor who will oversee the eurozone's banks.
October 19, 2012
Spanish woman passing by a Santander office and holding an umbrella

Resourceful Spain

Spain is planning to secure a credit line from the EU's new permanent bailout fund and with it trigger bond-buying by the ECB. But Madrid is hoping to escape further austerity measures by applying a resourceful trick.
October 17, 2012
Demonstrators are arrested by riot policemen during a protest against the visit to Greece by Germany's Chancellor Angela Merkel in Athens, October 9, 2012. Germany's Angela Merkel arrived in Greece on her first visit since Europe's debt crisis erupted here three years ago, braving protests to deliver a message of support - but no new money - to a nation hammered by recession and fighting to stay in the euro. REUTERS/Grigoris Siamidis (GREECE - Tags: POLITICS BUSINESS)

Merkel meets Greek premier

Merkel has met with the Greek prime minister in Athens amid further speculation about Greece's position in the eurozone. There were scenes of violence outside as protesters vented their anger over austerity measures.
October 9, 2012
EU flag in Athens (photo: ddp images/AP Photo/Petros Giannakouris)

Pressure on Greece

Eurozone hands out a rebuke for Greece, praise for Portugal and cash for Spanish banks.
October 9, 2012
Euro banknotes (photo: fotolia)

ESM fund launched

Eurozone finance ministers launch the ESM firewall to save the single currency from trouble.
October 9, 2012
Spain's Economy Minister Luis de Guindos (L) talks with his Luxembourg counterpart Jean-Claude Juncker (C) and European Economic and Monetary Affairs Commissioner Olli Rehn (R) during a meeting of the Board of Governors of the European Stability Mechanism (ESM) ahead of an eurozone finance ministers meeting in Luxembourg October 8, 2012. Euro zone finance ministers will launch their 500 billion euro permanent bailout fund on Monday, putting in place a major defence against the debt crisis that now threatens Spain. The fund, called ESM, will be used to lend to distressed euro zone sovereigns in return for strict fiscal and structural reforms that aim to put economies that have lost investor trust back on track. REUTERS

ESM ready to be tapped

Eurozone finance ministers have launched a permanent bailout fund for the bloc's members. The European Stability Mechanism is designed to provide help to nations in financial distress, but there are strings attached.
October 8, 2012
ESM in blue letters Photo: Franziska Kraufmann / dpa/lsw)

ESM ready to lend

The new firewall in the eurozone's financial crisis, the ESM, starts its work in Luxembourg.
October 8, 2012
(L-R) Spain's Minister of Economy and Competitiveness Luis de Guindos, Spain's First deputy prime minister and government spokeswoman Soraya Saenz de Santamaria, and Spain's Minister of Treasury Cristobal Montoro hold a press conference to present a budget for 2013 at the Moncloa Palace in Madrid, Spain, 27 September 2012. The Spanish government approved a tough austerity budget for 2013 in its struggle to ward off an international bailout, defying new protests against its spending cuts. The government did not immediately put figures on the budget cuts, which had earlier been estimated at a total of 40 billion euros (51 billion US dollars).

More austerity for Spain

The Spanish government has announced its toughest package of austerity measures yet, as it seeks to bring down the country's high budget deficit. This comes despite two days of sometimes violent protests in Madrid.
September 27, 2012
President Joachim Gauck

Gauck gives green light to ESM

The German president has signed legislation approving the country's participation in the eurozone's permanent financial bailout fund. He had delayed signing the bill due to legal challenges to the legislation.
September 27, 2012
Das Foto vom Donnerstag (26.01.2012) zeigt die beiden Türme des Europäischen Gerichtshofs in Luxemburg. Foto: Thomas Frey dpa/lrs

Ireland takes on ESM

The European Court will, for the first time, decide on the legality of the ESM.
September 26, 2012
A life belt swimming next to an open umbrella

ESM rider endorsed

The German government has thrown its weight behind a supplement to the European Stability Mechanism which puts an explicit ceiling on nations' liabilities. Parliament has to be kept briefed about transactions.
September 26, 2012

Bad tidings

There are fresh rumors that the Greek budget deficit may yet again be greater than expected.
September 25, 2012

ESM firepower to be boosted

The eurozone is looking to increase its permanent rescue fund to about 2 trillion euros ($2.58 trillion), according to German media reports. European ministers want to use private capital to reach the formidable target.
September 24, 2012
German Chancellor Angela Merkel addresses media during a news conference at Bundespressekonferenz in Berlin, September 17, 2012. REUTERS/Tobias Schwarz (GERMANY - Tags: POLITICS HEADSHOT)

State of Merkel's union

In an extended press conference that she holds every year, German Chancellor Angela Merkel commented on several issues facing Germany. She devoted much of her time to Germany's role in the eurozone crisis.
September 17, 2012
The decision pleases almost half of the population (Photo: Patrick Pleul/dpa)

Public backing for ESM ruling

Nearly half of Germans support the ruling that approved the European Stability Mechanism. However, 78 percent doubt that the bailout fund will decisively advance efforts to resolve the nearly three-year euro crisis.
September 13, 2012
The eight judges of the court's second senate Photo: Uli Deck dpa/lsw

Germany's euro bailout ruling

The world is looking to the German Constitutional Court as it rules on whether the ESM is legal.
September 13, 2012
Traders react at their desks as the President of the German Constitutional Court pronounces a judgement on the European Stability Mechanism and fiscal pact (Photo: REUTERS/Alex Domanski)

Relief for the euro

The approval of the European Stability Mechanism, delayed by legal challenges, has lifted a cloud of uncertainty. Markets also warmly greeted the news that key elements for stronger euro rescue efforts are now in place.
September 13, 2012
Traders watch the announcement of the court ruling REUTERS/Alex Domanski

Markets relieved

Finance experts are concerned that the ESM rescue could curtail structural reform efforts.
September 12, 2012
General views of the European parliament in Strasbour

'A decisive day'

There were sighs of relief in the EU as the German high court gave the green light to the ESM.
September 12, 2012

'Yes, but' again

The German high court's rulings are becoming more predictable, writes DW's Daphne Grathwohl.
September 12, 2012
ILLUSTRATION -Letters «ESM» (c) dpa - Bildfunk+++

Eurozone monetary fund

The ESM, the eurozone's permanent financial rescue fund, is to be up and running in October.
September 12, 2012

ESM ruling sets off markets

Stock markets in Europe have climbed to a 14-month high in the wake of a German Constitutional Court ruling paving the way for a new EU rescue fund. The Euro also rallied on the news seen as vital for the eurozone.
September 12, 2012
a magnifying glass in front of the letters ESM and a euro coin Photo: Uli Deck dpa/lsw

ESM readjustments?

Karlsruhe judges will probably not topple the ESM. But they could demand readjustments.
September 12, 2012
German Finance Minister Wolfgang Schäuble (CDU) speaks in parliament on Tuesday

All eyes on ESM ruling

Budget debates opened in the German Bundestag in Berlin, but much of the discussion has centered on Karlsruhe, where the Constitutional Court will rule on the European Stability Mechanism on Wednesday.
September 11, 2012
Ansgar Heveling

Out of their depth

The euro crisis keeps lawmakers in Berlin busy - but it can be hard to evaluate ESM legislation.
September 11, 2012
An EU flag shines through the cutout letters ESM Photo: Franziska Kraufmann dpa/lsw

No ESM? What then?

If German judges block the ESM, markets could well go haywire - but that need not spell doom.
September 11, 2012
ÉSM symbol picture (dpa )

Court clears way for ESM ruling

Germany's Constitutional Court has rejected a last-minute bid to postpone its decision on the legality of the eurozone's bailout fund. The court will rule on the European Stability Mechanism as scheduled on Wednesday.
September 11, 2012
Binders placed next to the logo of the German Constitutional Court Photo: Uli Deck dpa/lsw

Firmly independent

Germany's top judges are shielded from a political process in which they often get the last word.
September 11, 2012

Opinion: Bond buy up

Is the European Central Bank overstepping its mandate with its new bond-buying program?
September 7, 2012
President of European Central Bank Mario Draghi Photo:Michael Probst/AP/dapd)

ECB to the rescue

The European Central Bank's bond-buying program to boost the euro has experts divided.
September 7, 2012
A bystander passes by Bank of Ireland Pogatchnik/AP/dapd

Ireland meets its targets

Ireland has met the reform targets set by its creditors through June of 2012. In turn, the IMF has transferred a new bailout tranche to Dublin, amid calls for direct EU investment in Ireland's banking sector.
September 6, 2012
Wolfgang Schäuble

Schäuble trusts in courts

Finance Minister Wolfgang Schäuble has expressed confidence that Germany’s highest court will not rule against the country’s participation in the European Stability Mechanism and the European fiscal pact.
September 3, 2012
Alphabet soup arranged from A to Z

Eurocrisis buzzwords

A guide to some of the key terms being used in discussions about the eurozone crisis.
August 6, 2012
Draghi at the press conference

Disappointing Draghi

Big expectations, small results: the ECB can't offer a quick solution to the debt crisis.
August 3, 2012
Spain's Prime Minister Mariano Rajoy gestures during a news conference at Madrid's Moncloa Palace August 3, 2012

Spain hints at bailout option

Spanish Prime Minister Mariano Rajoy said on Friday that Madrid would decide whether to seek help from eurozone rescue funds once the ECB has given more details on planned rescue measures.
August 3, 2012
euro coin

More power to the rescue fund?

Italian Prime Minister Mario Monti said on Wednesday that the eurozone's permanent rescue fund, the ESM, will eventually have a banking license, an idea Germany and other countries believe is a step too far.
August 1, 2012
France's President Francois Hollande (L) greets Italy's Prime Minister Mario Monti before a working lunch at the Elysee Palace in Paris July 31, 2012.

Monti, Hollande: there's hope

French President Francois Hollande and Italian Prime Minister Mario Monti have said their governments are "determined to do everything to protect" the euro, also lauding recent progress in the debt debacle.
August 1, 2012
**ARCHIV** Das Euro-Logo vor der Zentrale der Europaeischen zentralbank in Frankfurt fotografiert am 6. November 2007. Der EZB-Rat trifft sich am Donnerstag 2. April 2009 in Frankfurt. (ddp images/AP Photo/Bernd Kammerer,fls) **FILE** Nov. 6 2007 file picture shows the euro sign in front of the European Central Bank, ECB, in Frankfurt, central Germany. Thursday March 5 2009 top managers gather for a meeting at the ECB. (ddp images/AP Photo/Bernd Kammerer)

Unlimited bailout?

It seems the euro rescuers will do anything to save the eurozone. But what does anything mean?
August 1, 2012

Green light

EU finance ministers have approved a Spanish bank bailout - but not without conditions.
July 20, 2012
Palazzo Montecitorio in Rome, the seat of the Italian lower house

Italian go-ahead for fiscal pact

Italy's parliament has ratified the European fiscal pact. Several more states must ratify the treaty if it is to come into effect.
July 19, 2012
European flag

Spanish banks

German parliamentarians have been dragged back to debate aid for troubled Spanish banks.
July 18, 2012
Constitutional Court with judges

September ruling on ESM

Germany's Constitutional Court has confirmed that it will not make its decision on the European Stability Mechanism (ESM) and the fiscal pact until mid-September.
July 16, 2012
Protest placards against the euro bailout

'More Democracy' means more plaintiffs

Germans file suit against the euro bailout, claiming it is against the country's constitution.
July 14, 2012
Judges in red robes, standing

Intense debate

Germany's top court closely examines the ESM and the fiscal pact as plaintiffs look on.
July 12, 2012
Klaus Regling

Pragmatic approach

A German economist will be in charge of the ESM's 700-billion-euro bailout fund.
July 11, 2012
Members of Germany's constitutional court in Karlsruhe

Constitutional considerations

Germany's highest court is in hearings about whether the ESM and fiscal pact are legal.
July 11, 2012
Judges from the Constitutional Court

No quick decision on EU deals

Germany's constitutional court will likely take its time before ruling on whether the workings of Europe's new last-resort lending mechanism are compatible with the law. The decision may be delayed until the autumn.
July 10, 2012
Eurozone sign

Deadlocked Europe

There's no reason to be optimistic that Europe's crisis has been solved, writes Joseph Grieco.
July 5, 2012
Dr. Christoph Degenhart

Court challenges

Objections hit the German constitutional court concerning the new bailout fund ESM.
July 2, 2012