Evropský mechanismus stability
European Stability Mechanism

Summary/Abstract: With a view to guarantee the stability of the euro area as a whole and to assist individual Member States under market pressure, temporary mechanisms (EFSM , EFSF) have been set up as a backstop. As the tension on the financial market increased, the establishment of permanent mechanism – the European Stability Mechanism became inevitable. The circumstances accompanying the creation are not the only link between the Treaty establishing the European Stability Mechanism and the Fiscal Compact. The bond between these two European initiatives is confirmed by the fact that starting 1 March 2013 the ratification of the Fiscal Compact is a prerequisite for granting of financial assistance from the European Stability Mechanism. The study provides deeper insight into the certain provisions of the Treaty establishing the European Stability Mechanism and their consequences. Attention is also paid to the context of its creation and to the link with the Fiscal Compact. The assistance granted from the European Stability Mechanism cannot be perceived only as a sign of solidarity but mainly as an incentive for the M ember State in financial difficulties to accept corrective measures agreed outside the national level.

• Details
• Contents