ESM (European Stability Mechanism)

The European Stability Mechanism (ESM) is a financial organization established by eurozone countries to provide emergency support to member nations facing financial crises. It acts as a safety net by offering loans or financial assistance to help stabilize economies and prevent economic downturns from spreading across Europe. Funded collectively by member countries, the ESM aims to maintain financial stability, confidence in the euro, and prevent crises from escalating by providing timely, conditional financial aid. It functions as a last-resort mechanism, reinforcing the financial integrity of the eurozone.