ESM Reform Documents
DISCLAIMER: these draft documents are part of the ESM reform package. The ESM reform was agreed in principle at the Eurogroup meeting of 4 December 2019, subject to the conclusion of national procedures. On 30 November 2020, the Eurogroup agreed to proceed with the reform of the ESM and the Amending Agreement was later signed by the ambassadors for the ESM Members. The documents are made available for information purposes only. They can be formally adopted by the relevant ESM decision-making bodies only after the entry into force of the ESM Treaty, as amended by the Amending Agreement.
(all official language versions) Agreement Amending the Treaty Establishing the ESM, signed on 27 January 2021. Estonia signed the Agreement Amending the ESM Treaty on 8 February 2021. (to enter into force on the date when instruments of ratification, approval or acceptance have been deposited by all the Signatories)
This is the draft revised text of the ESM By-Laws which reflects changes related to, among others, the revised ESM Treaty, including the set-up of the backstop facility which may be granted to the Single Resolution Board for the Single Resolution Fund. It is subject to approval by the Board of Governors.
This draft document sets out a new guideline which elaborates the agreements on the design of a new ESM financial instrument, namely the common backstop instrument, which the ESM will provide to the Single Resolution Board (the “SRB”) for the Single Resolution Fund to support the application of the resolution tools and exercise of the SRB’s resolution powers under the Single Resolution Mechanism of the European Union.
This draft document sets out the decisions of the Board of Governors, to be adopted by mutual agreement, granting the actual backstop facility. This resolution also contains the most important financial conditions for the backstop. The actual approval of a loan itself remains subject to a further decision by the Board of Directors.
This draft document sets out an update to the existing guideline on loans which may be granted by the European Stability Mechanism for financial assistance purposes, notably to reflect the enhanced role of the European Stability Mechanism under the revised ESM Treaty.
This draft document sets out an update to the existing guideline on financial assistance which may be granted by the European Stability Mechanism in the form of loans, for the re-capitalisation of financial institutions. The update refers notably to the enhanced role of the European Stability Mechanism under the revised ESM Treaty.
This draft document sets out an update to the existing guideline on primary market support facility which may be granted by the European Stability Mechanism, which may engage in primary market purchases of bonds or other debt securities issued by ESM Members under such facility. The update refers notably to the enhanced role of the European Stability Mechanism under the revised ESM Treaty.
This draft document sets out an update to the existing guideline on secondary market support facility which may be granted by the European Stability Mechanism for supporting the good functioning of the government debt markets of ESM Members. The update refers notably to the enhanced role of the European Stability Mechanism under the revised ESM Treaty.
This staff working document lays out the methodological guidance for assessing sovereign debt sustainability analysis and repayment capacity in the context of financial assistance granted by the ESM. It was prepared jointly by Commission’s and ESM’s staff in liaison with ECB.
This version of the Treaty Establishing the European Stability Mechanism [in English] includes modifications from the Amending Agreement signed on 27 January and 8 February 2021 by the Contracting Parties. Its entry into force is subject to ratification, approval or acceptance by the signatories of said Amending Agreement, the ratification details of which may be consulted on this webpage.
This document sets out the decisions of the Board of Governors, to be adopted by mutual agreement, relating to the nominal cap and to the rules for verifying the permanence of the legal framework for bank resolution.
The legal basis for this decision is Article 18a(1) of the ESM Treaty, as amended by the draft Amending Agreement.
The legal basis for this decision is Article 18a(1) of the ESM Treaty, as amended by the draft Amending Agreement.
This document sets out an update to the existing guideline for precautionary financial assistance, which further elaborates the detailed agreements on making the precautionary credit lines more efficient, to be adopted by the Board of Directors.
The legal basis for the update of this guideline is Article 14 the ESM Treaty, as amended by the draft Amending Agreement.
The legal basis for the update of this guideline is Article 14 the ESM Treaty, as amended by the draft Amending Agreement.
This document sets out an update to the existing pricing guideline for financial assistance, which incorporates the agreed pricing elements for the common backstop loans and the precautionary credit lines.
This document sets out the decisions of the Board of Governors, to be adopted by mutual agreement, relating to the annulment of the direct recapitalisation instrument.