Tag: ESM

Eurozone finance ministers agreed on Friday (30 April) on a temporary increase, up to €700 billion, of their financial rescue capacity to prevent a new flare-up of Europe's sovereign debt crisis, but markets may judge it too small to be convincing.

Chinese Prime Minister Wen Jiabao says Beijing is considering greater involvement in the eurozone's rescue funds, the temporary European Financial Stability Facility (EFSF) and the upcoming European Stability Mechanism (ESM).

European policymakers began discussing new ways of boosting the capacity of their €440 billion bailout facility, in the clearest sign yet that the eurozone is getting ready to rescue a big country such as Italy or Spain from the unfolding debt crisis.

Early this morning, EU leaders finally reached a difficult agreement on the funding structure of the euro zone's new permanent bailout facility, which is due to enter into force after 2013, after Germany sought last-minute changes needed to secure political backing in Berlin.

EU finance ministers agreed yesterday (21 March) to boost a permanent stability fund, which from mid-2013 will hold €700 billion to shield eurozone countries from future debt crises.