The ESM provides financial assistance to beneficiary countries on the condition that they adjust their economic policies to overcome the problems that led them to seek financial aid. This requirement, known as conditionality, usually specifies reforms aimed at eliminating or reducing weaknesses in the beneficiary country’s economy, restoring competiveness, and regaining market access. These policy conditions are listed in a Memorandum of Understanding (MoU), which is signed by the beneficiary country and the European Commission, and approved by the ESM Board of Governors.
During each programme, the implementation of the agreed reforms is verified. For this purpose, review missions with representatives of the European Commission, in liaison with the ECB, ESM, and the IMF (when applicable), periodically meet with the beneficiary country’s authorities. Further disbursements are made only if the institutions positively assess reform implementation.
The Conditionality dashboard allows users to view the full range of policy conditions for each programme, as well as the compliance assessment as presented in reports published after each review mission.