№235. On the Tasks of the European Stability Mechanism
№235. On the Tasks of the European Stability Mechanism

Author(s): Fabrizia Peirce, Jacopo Carmassi, Stefano Micossi
Subject(s): Governance, Economic policy, Political economy, EU-Accession / EU-DEvelopment, Financial Markets, Fiscal Politics / Budgeting
Published by: CEPS Centre for European Policy Studies
Keywords: European Stability Mechanism; Financial markets; Union financial assistance to member states; EU economic governance;
Summary/Abstract: In recent weeks pressures on the euro and eurozone sovereign debtors have subsided. Buoyant growth in the global economy, increasingly benefiting also the European economy, has of course played an important role in calming financial markets. But even more important has been the perception that France and Germany are again working constructively for a strong economic Europe. More broadly, the acute turbulence in financial markets since the spring of 2010 may have finally convinced our political leaders, notably including the German political establishment, that the benefits of a stable currency far outweigh the costs that may have to be borne to make it work properly.

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