Building Central Financial Assistance Capacities

  • Pierre Schlosser


In May 2010 European leaders agreed on the creation of a € 500 bn mechanism to provide assistance to euro area countries facing financial stability risks. The establishment of the European Financial Stability Facility (EFSF), later turned into the European Stability Mechanism (ESM), was a critical juncture in the constitution of a European fiscal centre. Its financial capacity is unprecedented. The mechanisms’ lending power amounts to more than three times the size of the annual EU budget. This chapter retraces the negotiation that led to the creation of these mechanisms and of the smaller and often forgotten facilities that preceded their existence. The chapter argues that the creation of these financial mechanisms has converted the Eurogroup and the Euro Working Group (EWG) into executive bodies.


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Pierre Schlosser
    • 1
  1. 1.European University InstituteFlorenceItaly

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