Einde inhoudsopgave
State aid to banks (IVOR nr. 109) 2018/4.5.1
4.5.1 Background of the ESM
mr. drs. R.E. van Lambalgen, datum 01-12-2017
- Datum
01-12-2017
- Auteur
mr. drs. R.E. van Lambalgen
- JCDI
JCDI:ADS589391:1
- Vakgebied(en)
Financieel recht / Europees financieel recht
Mededingingsrecht / EU-mededingingsrecht
Voetnoten
Voetnoten
Another milestone for the ESM was 27 November 2012. On that date, the legality of the ESM was confirmed by the CJEU in its judgment in the case C-370/12 (Pringle).
On 28 November 2010, the Ministers of Finance of the Euro area Member States already agreed on the establishment of the ESM.
The following paragraph was added to Article 136 TFEU: “3. The Member States whose currency is the euro may establish a stability mechanism to be activated if indispensable to safeguard the stability of the euro area as a whole. The granting of any required financial assistance under the mechanism will be made subject to strict conditionality.”
The EFSF and the ESM functioned concurrently from 8 October 2012 until 30 June 2013.
The purpose of the European Stability Mechanism (ESM) is to grant stability support to Euro-area Member States. The ESM is the successor of the EFSF (European Financial Stability Facility). Whereas the EFSF was temporary, the ESM is a permanent mechanism.
When was the ESM created? There is not one single date; rather, the ESM was the result of several successive steps.1 On 17 December 2010, the European Council agreed on the need for Euro-area Member States to establish a permanent stability mechanism.2 Subsequently, on 25 March 2011, the European Council adopted Decision 2011/199/EU amending Article 136 TFEU.3 On 2 February 2012 the Euro-area Member States signed the ESM Treaty. The ESM become operational on 8 October 2012.4