European Stability Mechanism (ESM) press conference: extracts from the press conference by Jeroen DIJSSELBLOEM, President of the Eurogroup, and Klaus REGLING, ESM Managing Director
Lieu: Luxembourg (town), Luxembourg - ESM
End production: 20/06/2013 First transmission: 20/06/2013
The Board of Governors of the European Stability Mechanism (ESM) held its first annual meeting today at the ESM office in Luxembourg and approved the ESM Annual Report for 2012.
Jeroen Dijsselbloem, President of the Eurogroup and Chairman of the Board of Governors said the ESM is filling an institutional gap in the initial design of monetary union. As the ESM provides assistance against strong conditionality it helps beneficiary countries to return to sustainable development, the Chairman of the Board of Governors said.
ESM Managing Director Klaus Regling stressed it was key now that the ongoing national reform measures and the improved economic policy coordination rules among euro area Member States are implemented.
The Annual Report 2012 approved today covers the time from the ESM’s inauguration on 8 October to 31 December 2012. During this period the ESM raised and disbursed €39.5 bn. It received total paid-in capital from its 17 Member States of €32 bn. Today it has paid-in capital amounting to €48 bn. So far it has disbursed €41.3 bn to Spain and committed €9 bn to Cyprus.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||General views of the press conference room - Jeroen Dijsselbloem, President of the Eurogroup, and Klaus Regling, ESM Managing Director (3 shots)
||SOUNDBITE (English) by Jeroen Dijsselbloem: Among the Governors, there is a clear recognition that the ESM plays a crucial role. It fills an institutional gap in the initial design of the EMU. The EFSF and now the ESM are preserving financial stability. They provide loans in the context of a macro-economic adjustment programme for Portugal, Ireland, Greece and recently Cyprus. In Spain, the ESM provided loans in the context of an assistance programme for the financial sector. Crucially they provide the assistance against strong conditionality which makes sure that the beneficiary countries bring themselves back into the position to stand on their own feet.
||Cutaways of press (2 shots)
||SOUNDBITE (English) by Jeroen Dijsselbloem: The Board of Governors commended Klaus Regling that the ESM from Day1 was a fully functioning international institution. It is very good for the financial stability of the euro area as a whole that the ESM is there and can be active at any time, should need be.
||SOUNDBITE (English) by Klaus Regling: I believe the temporary EFSF and the permanent ESM have achieved what they were created for. They help Member States to adjust, thus contributing to the stability of the euro area as a whole. Up to today, the EFSF and the ESM have disbursed a bit more than €200 billion in their programmes to Portugal, Ireland, Greece, Spain and Cyprus. Almost 40 €billion are still in the pipeline. I believe that without the rescue funds, Europe probably would be different today. Very likely, countries like Ireland and Portugal would probably be no longer part of the EMU. All countries that received financing from the EFSF and the ESM are doing their adjustment. The macro-economic imbalances in these countries are reduced significantly. Current account deficits are disappearing, fiscal deficits are coming down and the economies are re-balancing. So this demonstrates that financing with conditionality works.
||Cutaways (2 shots)