Statement by President of the European Council, Herman Van Rompuy, on the signature of the European Stability Mechanism Treaty

02 February 2012

Mr Van Rompuy said that this permanent crisis mechanism will contribute to raising confidence and ensuring solidarity and financial stability in the euro area. It creates a permanent firewall with a broad range of tools and a strong financial basis to safeguard financial stability.

The ESM will be an international financial institution, based in Luxembourg and founded by euro area Member States, with an initial maximum lending volume of €500 billon, to be achieved by €700 billion of subscribed capital (€80 billion in paid-in shares and €620 billion in callable shares).

As agreed in December by the leaders of the European Union, we will reassess the adequacy of resources under the European Financial Stability Facility and European Stability Mechanism on 1 March, 2012.

Press release

Treaty text-ESM

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