More arrivals and doorsteps
Lieu: Luxembourg (town), Luxembourg - Council
End production: 08/10/2012 First transmission: 08/10/2012
The Treaty establishing the European Stability Mechanism (ESM) has been ratified by all 17 euro area member states. It entered into force on 27 September 2012, nine months earlier than initially foreseen. The treaty was signed by euro area member states on 2 February 2012. The ESM board of governors hold its inaugural meeting on 8 October 2012. The ESM is an intergovernmental institution based in Luxembourg, set up to provide financial assistance to eurozone member states experiencing, or being threatened by, severe financing problems, if this is indispensable for safeguarding financial stability in the euro area as a whole. The initial maximum lending capacity of the ESM is set at €500 billion. This is achieved with subscribed capital of €700 billion. As a permanent mechanism, the ESM will take over the tasks currently fulfilled by the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM). With the accelerated entry into force, the ESM will now operate alongside the EFSF for nine months. The most important decisions under the ESM will be taken by its board of governors (finance ministers) by mutual agreement. The ESM will have a board of governors and a board of directors, as well as a managing director. Klaus Regling, the chief executive officer of the EFSF, was appointed by the Eurogroup in July 2012 as managing director of the ESM.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||SOUNDBITE by Michaël Noonan, Irish Minister for Finance (In English) saying that: I don't think it will be done towards the day because the conditions of directly recapitalizing banks from the 29th of June was that European supervision of the banking system will be put in place first and then that they are sufficiently long to see if it actually works so there wasn't any intention that anything like that would happen today. But the Commission seems to support the position that we all thought was the position on the 29th of June and the evening of the Helsinki statement, the Dutch authorities put out a statement saying what they meant by legacy was banks becoming solvent and were no longer functioning as banks but that functioning banks would not caught in their definition of legacy so in terms applying that to Ireland, they were excluding English or Irish bank but they were including EIB.
||SOUNDBITE by Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro (In English) saying that: The inauguration and state operation of ESM is a very important Milestone for the European Union and for the Eurozone. It provides the Eurozone with a robust and permanent firewall and it provides us with a strong tool box of effective and flexible instruments. Thinking of where we were two and a half years ago when we had no instruments of crisis management we had to create the Greek loan facility and the European Financial stability facility; now we are moving forward and we are supplementing the economic and monetary union with one important building block.
||SOUNDBITE by Jan Kees De Jager, Dutch Minister for Finance (In Dutch) saying that:
The Troïka is investigating in Athens right now. We should reform the system and get a well balanced budget; Greece should decrease their expenditure. These are the best ways to solve Greece debt problems and to really solve their economic problems.
Question: One of your colleague said that a part of Greek debt won't be reimbursed, do you think so?
He didin't clearly said that, you should ask him. The Dutch Government is quite clear. Greece has to overcome the crisis by itself first, it cannot be done by other member states.
||Christine Laguarde, Managing Director of the Internaitonal Monetary fund