European Stability Mechanism

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The European Stability Mechanism (ESM) is a bailout fund set to be launched in July 2012 to succeed the European Financial Stability Facility (EFSF). Unlike the EFSF, which is a temporary fund, the ESM is a permanent rescue funding program with a total capacity of 500 billion EUR.

It was designed to help debt-troubled European Union (EU) states and enhance financial stability in the region by lending money to EU governments.

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"You cannot escape the responsibility of tomorrow by evading it today."
Abraham Lincoln
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