European Financial Stability Facility

The European Financial Stability Facility (EFSF) is a temporary rescue fund created by Eurozone countries to support member nations facing severe financial difficulties. It functions by raising money through bonds in international markets and then lending it to countries with financial problems, helping to prevent wider economic crises in the Eurozone. The EFSF plays a crucial role in maintaining financial stability and confidence within the euro area, acting as a collective safety net during times of crisis. It was established in 2010 as part of efforts to strengthen economic cooperation among Eurozone countries.