What will be the ESM’s new tasks in future financial assistance programmes?

The ESM will have a stronger role in the design, negotiation and monitoring of conditionality in future financial assistance programmes.

When an ESM Member requests support, the Commission in liaison with the ECB, and the ESM will work closely together to prepare the assessments supporting the decision to grant a loan. These include the assessment of a Member’s debt sustainability and repayment capacity, the assessment of financial stability risks, and the financing needs of the Member requesting support. The ESM will perform its analysis and assessment from the perspective of a lender.

The ESM will be involved in the design of policy conditionality and any future Memorandum of Understanding (MoU) detailing the conditionality attached to the financial assistance facility will be signed by both the Commission and the ESM Managing Director.

The ESM will also monitor compliance with the conditionality attached to the financial assistance facility together with the Commission in liaison with the ECB.