https://www.esm.europa.eu/publications/government-expenditure-composition-and-fiscal-policy-spillovers-small-open-economies-within-a-monetary-union Read publication: Journal of Marcroeconomics Volume 48, June 2016, Pages 305–326 Author: Daragh Clancy | Senior Economist at the European Stability Mechanism with P. Jacquinot and M. Lozej Abstract: We examine the implications of government expenditure that is complementary to private consumption...

https://www.esm.europa.eu/publications/accessing-sovereign-markets-recent-experiences-ireland-portugal-spain-and-cyprus Download PDF: Discussion Paper 2 This discussion paper collects the experiences of former EFSF/ESM programme countries in rebuilding investor trust and returning to normal market access. Coordination by ESM with contributions from heads of Debt Management Offices of Ireland, Portugal, Spain, and...

https://www.esm.europa.eu/publications/how-esm-compares-other-regional-financial-institutions-0 In a world of increasingly integrated capital markets, the global financial crisis and subsequent European financial instability underscored the necessity of setting up credible financial backstops for crisis prevention and resolution. Countries that are under severe financial strain may be shut out...

https://www.esm.europa.eu/publications/non-performing-loan-burden-curbs-lending-holds-back-growth The recent economic and financial crisis led many households and companies to default on bank loans. European banks carry this large stock of NPLs on their balance sheets – the single largest legacy of the past crisis. The NPLs lock banks’ potential lending capacity. During the euro area crisis, the...

https://www.esm.europa.eu/publications/how-greece-benefited-european-debt-relief-0 Euro area Member States have taken several steps to ease the lending terms for Greece to support its ability to service its debt burden, principally through lower financing costs and longer maturities. The first European assistance instrument, known as the Greek Loan Facility (GLF), was amended in...

https://www.esm.europa.eu/publications/esm-annual-report-2015 Download PDF: ESM Annual Report 2015 The annual report contains a description of the ESM's policies, activities, financial statements and economic developments in 2015. Additionally, it contains an external auditor's report and a report of the Board of Auditors. Excerpt of the Message from the...

https://www.esm.europa.eu/investors/us-investors/investors-presentation The Investor Presentation gives an overview of topics that are relevant to investors evaluating ESM instruments, such as:ESM: Key features, structure and instrumentsESM: Lending and funding activitiesWhy invest in ESM?ESM recent transactions & performanceTo see the latest Investor Presentation...

https://www.esm.europa.eu/publications/investor-relations-newsletter-march-2017 Download the March 2017 Investor Newsletter The ESM/EFSF Investor Newsletter is a quarterly publication that provides investors with updates on ESM/EFSF funding activities. Subscribe to the ESM/EFSF Investor Newsletter

https://www.esm.europa.eu/publications/tackling-sovereign-risk-european-banks Download PDF: Discussion paper 1 This discussion paper analyses the trade-offs involved in reforming the regulatory treatment of sovereign exposures in European banks. Authors: Andreja Lenarčič | Economist and policy strategist at the European Stability Mechanism Dirk Mevis | Banking sector expert...

https://www.esm.europa.eu/publications/euro-area-sovereign-ratings-analysis-fundamental-criteria-and-subjective-judgement Download PDF: Working Paper 14 This paper studies the drivers of sovereign ratings for euro area countries and finds that judgement is applied to varying degrees, and thus recommends that rating agencies increase their methodological transparency. Authors: Rudolf Alvise Lennkh and Antonello D...

https://www.esm.europa.eu/publications/green-paper-building-capital-markets-union Public Consultation The ESM has submitted its response to the European Commission’s public consultation “Building a Capital Markets Union”. The ESM welcomes the aim to create a Capital Markets Union, as it would promote financial stability and economic growth by creating alternative funding channels...

https://www.esm.europa.eu/publications/bank-and-sovereign-risk-feedback-loops Download PDF: Working Paper 1 This paper studies the link between sovereign risks and the fragility of the banking sector pointing to the challenges of bank rescue operations for the state. Author: Aitor Erce | Senior Researcher at the European Stability Mechanism Abstract: Measures of sovereign and...

https://www.esm.europa.eu/publications/can-consumer-confidence-provide-independent-information-consumption-spending-evidence Download PDF: Working Paper 2 This paper investigates how well consumer confidence predicts households future consumption expenditure. Author: Antonello D’Agostino | Senior Economist in the Economics and Policy Strategy department with Caterina Mendicino | European Central Bank Abstract This paper...

https://www.esm.europa.eu/publications/balance-sheet-effects-foreign-reserves-and-public-policies Download PDF: Working Paper 3 This paper shows that countries can use foreign reserves to enhance their domestic economies’ resilience to potential risks from balance sheet effects. Author: Gong Cheng | Economist and policy strategist at the European Stability Mechanism Abstract: This paper shows...

https://www.esm.europa.eu/publications/government-expenditure-composition-and-fiscal-policy-spillovers-small-open-economy Download PDF: Working Paper 4 This paper shows that productive government investment can improve an economy’s external competitiveness and stimulate private investment. Author: Daragh Clancy | Senior Economist at the European Stability Mechanism with Pascal Jacquinot | European Central Bank and...

https://www.esm.europa.eu/publications/what-happened-profitability-shocks-challenges-and-perspectives-euro-area-banks Download PDF: Working Paper 5 This paper shows how multiple shocks have hit euro area bank profitability since the crisis - their effects differ by bank type and location Author: Gong Cheng | Economist and policy strategist at the European Stability Mechanism with Dirk Mevis | Banking sector expert...

https://www.esm.europa.eu/publications/collateral-damage-micro-simulation-transaction-cost-shocks-value-central-bank-collateral Download PDF: Working Paper 6 This paper analyses how changes in transaction costs may affect the value of assets that banks use to collateralise borrowings in monetary policy operations. Author: Rudolf Alvise Lennkh | Economist and policy strategist at the European Stability Mechanism with Florian...

https://www.esm.europa.eu/publications/combining-time-variation-and-mixed-frequencies-analysis-government-spending-multipliers Download PDF: Working Paper 7 This paper finds that Italian government spending shocks had a strong impact on GDP in the early 1990s and again during the most recent recession. Author: Antonello D’Agostino | Senior Economist in the Economics and Policy Strategy department with Jacopo Cimadomo |...

https://www.esm.europa.eu/publications/european-government-bond-dynamics-and-stability-policies-taming-contagion-risks Download PDF: Working Paper 8 This paper analyses bond yields of euro area sovereign bonds and finds that the distance between core and periphery has narrowed since the EFSF/ESM was established. Author: Martin Hillebrand | European Stability Mechanism with Peter Schwendner, Martin Schuele, Thomas...

https://www.esm.europa.eu/publications/catalytic-imf-gross-flows-approach Download PDF: Working Paper 9 This paper argues that the strongest channel through which the IMF stabilises a borrowing country’s financial flows is via its effect on the domestic banking system. Author: Aitor Erce | Senior Researcher at the European Stability Mechanism with Daniel Riera-Crichton |...