ESM Treaty

The European Stability Mechanism (ESM) Treaty is an agreement among eurozone countries aimed at ensuring financial stability in the region. Established in 2012, it provides financial support to member states facing severe financial difficulties, such as high debt or economic crises. The ESM can offer loans and other assistance under strict conditions to help countries stabilize their economies. It acts as a safety net, preventing contagion across the eurozone and reinforcing confidence in the euro as a common currency. The ESM is governed by a set of rules that promote fiscal responsibility among its members.