What is the Early Warning System (EWS)?

The ESM has, as specified in the ESM Treaty, created an Early Warning System to detect loan repayment risks and allow for corrective actions. The EWS also applies to EFSF loans.
The objective is to determine a programme country’s ability to repay its loans. This requires an assessment of the country’s short-term liquidity, market access, and the medium- to long-term sustainability of public debt.

This work takes into account and complements the fiscal and debt sustainability analysis that the European Commission and the European Central Bank (ECB) perform during and after a programme.