European Stability Mechanism

The European Stability Mechanism (ESM) is a financial institution established by countries in the Eurozone to provide support to member states experiencing financial difficulties. Created in 2012, it offers loans and financial assistance to stabilize economies, ensuring they can meet their obligations and maintain financial stability. The ESM aims to prevent crises from spreading and help countries regain access to the financial markets. It operates through strict conditions, requiring recipients to implement economic reforms to restore their fiscal health, thereby safeguarding the Eurozone as a whole.