ESM Pandemic Crisis Support - Explainer

On 9 April 2020, the euro area finance ministers (Eurogroup) decided on a comprehensive economic policy response to the COVID-19 crisis. Concretely, three important safety nets for workers, businesses and sovereigns are established, amounting to a package worth € 540 billion. The ESM is the safety net for sovereigns and provides a Pandemic Crisis Support. On 23 April, the EU Heads of State of Government (European Council) endorsed this agreement.

On 8 May, the Eurogroup agreed on the details attached to this credit line. After national procedures, the credit line was made operational by the ESM Board of Governors (the ESM’s highest decision-making body composed of the 19 euro area finance ministers) on 15 May 2020.