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The five euro area countries that requested financial assistance from the EFSF or ESM suffered from a number of problems. One key weakness that led some of them down the wrong path economically: a structural imbalance in their growth model. This model relied strongly on domestic demand fuelled by unsustainable government spending, large wage increases, and surging private indebtedness funded by foreign creditors. High wage rises combined with low productivity growth made domestic goods and services more expensive and less competitive on international markets.
The ESM Board of Governors mandates the ESM to follow up on the evaluation report on EFSF/ESM financial assistance
15 June 2017. Annual Meeting of ESM Board of Governors. Luxembourg
Luxembourg – The Board of Governors of the European Stability Mechanism (ESM) held its fifth Annual Meeting today at the ESM’s premises in Luxembourg and approved the ESM Annual Report for 2016. The Board of Governors comprises the 19 euro area finance ministers. They discussed the main developments of the ESM and its key activities over the past year.
On 15 June 2017, the ESM Board of Governors (composed of the 19 euro area finance ministers) held its fifth annual meeting at the ESM premises in Luxembourg. During the meeting, the Board of Governors approved the ESM Annual Report, submitted by the Managing Director. The ESM Annual Report includes a description of the policies and activities of the ESM; the ESM Financial Statements; the external auditor's report, and the Board of Auditors' report in respect of the ESM Financial Statements.
This paper shows that changes in gross financing needs have a significant effect on borrowing costs when debt stocks are high
Authors: Carmine Gabriele, Aitor Erce, Marialena Athanasopoulou, Juan Rojas
Abstract: