The Heads of State and Government of the then 17 member states of the eurozone sign a Treaty in Brussels for the establishment of the European Stability Mechanism.
The European Stability Mechanism (ESM) is part of the EU’s strategy for financial stability in the eurozone. It provides financial assistance to eurozone countries that are experiencing or threatened by financing difficulties.
The ESM is authorized to grant loans within the framework of a macroeconomic adjustment program, to purchase securities in the primary and secondary securities markets, to provide precautionary financial assistance in the form of credit lines, and to finance recapitalizations of financial institutions through loans to the governments of its member countries.
