A word from the Managing Director
A word from the Managing Director
Safeguarding euro area integrity
Fifteen years ago, the global financial crisis brought to light unforeseen weaknesses in the setup of the euro area, jeopardising the integrity of the monetary union.
Following the creation of its temporary predecessor the EFSF, the permanent ESM was created in 2012 to help euro area countries avoid and overcome financial crises. To date, the EFSF and the ESM have together lent close to €300 billion to five countries, which now enjoy sound finances.
Putting the crises to good use
The global financial and euro crises prompted essential changes to the EU and euro area architecture, the value of which has been proven along with Europe’s commitment to solidarity in two subsequent crises over the past three years, the Covid-19 pandemic and the Russian invasion of Ukraine.
The ESM participated in this historic act of European solidarity during the pandemic by providing a credit line of up to €240 billion to fund pandemic-related healthcare expenses. Accessible on equal terms to any member state, the Pandemic Crisis Support tool proved a vital signal to markets of European unity and determination. Expiring untapped at the end of 2022, the tool created a powerful bulwark to the integrity of the single currency.
The path ahead and the role of the ESM
The pandemic has illustrated that Europe will continue to face different types of crises that can strike all euro area countries. Reflections are underway to assess how the ESM can be even more useful in such circumstances.
The ESM is committed to cooperating with other institutions to support its member countries in not only managing crises, but preventing them.
Upon my appointment as Managing Director on 1 December 2022, my first decision was to engage with all our shareholders to listen to their views on how the ESM can best support them. The input of our shareholders will be essential in determining how the ESM will evolve within its new mandate.
