The European Stability Mechanism Term Paper by Carly Evans


An analytical essay detailing the creation of the ESM.
# 150136 | 881 words | 4 sources | APA | 2012 | US
Published by on Jan 27, 2012 in Economics (International)


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Description:

This paper is an overview of the establishment of the European Stability Mechanism, a permanent bailout fund that would replace the current temporary funds in place. First suggested as an idea in the wake of the European Sovereign Debt crisis, the permanent fund would better ensure the stabilization of the European economy into the future. This paper takes a look at the history of its negotiations and plans for launch in July of 2012.

Outline:
The EFSF
Establishing the Permanent ESM
Contributions from Member States
Objections & Concerns within the EU
Moving Forward

From the Paper:

"Official discussions for the proposed ESM got underway in 2010 as it became clear that both Greece and Ireland were in hot water and that the crisis would not resolve itself any time soon-- either in Europe or in the global market. Germany stepped forward and suggested a treaty amendment to the EU treaty that would define a permanent fund, and received support from the European Council in October of that year.

"Given the urgency of the crisis, discussions proceeded relatively quickly. By March of 2011, it was announced that a separate treaty would be developed to cover the ESM, and in December of 2011 the European Council announced that it had reached an understanding.The ESM was set for launch in July 2012 as soon as participating states who represented 90% of the capital involved would be able to ratify it. (Consilium, 2011)

"The structure of the ESM would be simple and similar to the EU model. Its headquarters would be in Luxembourg. The ESM would be comprised of elected governors from each state within the Union on a Board of Governors. The chairperson of the board would be selected through an election process within the board, or else the leader of the organization will be whoever is acting as the current President of the Euro Group. The ESM is schedule to run in tandem with the existing temporary fund-- the EFSF -- for one year after its launch."

Sample of Sources Used:

  • Bloomberg. (2012, January 20). Europe's ESM Foresees Bond Clauses, IMF Restructuring Standards. Retrieved January 21, 2012, from Business Week: http://www.businessweek.com/news/2012-01-22/europe-s-esm-foresees-bond-clauses-imf-restructuring-standards.html
  • Consilium, E. (2011, December 9). STATEMENT BY THE EURO AREA HEADS OF STATE OR GOVERNMENT . Retrieved January 20, 2012, from Europa Consilium: http://consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/126658.pdf
  • Peston, R. (2012, January 16). Standard Poor's downgrades EU Bailout Fund. Retrieved January 20, 2012, from BBC: http://www.bbc.co.uk/news/business-16586807
  • Wohlmeyer, H. (2011, October 2). Austria: Objections and Reservations to ESM (European Stability Mechanism). Retrieved January 20, 2012, from Current Concerns: http://www.currentconcerns.ch/index.php?id=1348

Cite this Term Paper:

APA Format

The European Stability Mechanism (2012, January 27) Retrieved December 07, 2021, from https://www.academon.com/term-paper/the-european-stability-mechanism-150136/

MLA Format

"The European Stability Mechanism" 27 January 2012. Web. 07 December. 2021. <https://www.academon.com/term-paper/the-european-stability-mechanism-150136/>

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