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04 August 2015

European Council: EFSM revised to shield non-euro area countries from risk

The Council approved a regulation amending the European Financial Stabilisation Mechanism in order to protect non-euro area member states from any risk arising from financial assistance given to a euro area country.

This principle was endorsed on 17 July 2015 by a joint statement of the Commission and the Council. It was agreed along with a decision to grant €7.16bn in short term financial assistance to Greece under the EFSM. 

Specifically, the regulation ensures that financial assistance from the EFSM to a euro area member state will only be granted if legally binding provisions are in place guaranteeing that non-euro area member states are immediately and fully compensated for any liability they may incur as a result of a failure by the beneficiary to repay the financial assistance in accordance with its terms. 

The regulation was adopted by written procedure. 

Full press release

© European Council

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