European Financial Stabilisation Mechanism The European Financial Stabilisation Mechanism (EFSM) is an emergency funding programme reliant upon funds raised on the financial markets and guaranteed by the European Commission using the budget of the European Union as collateral.[1] It runs under the supervision of the Commission[2] and aims at preserving financial stability in Europe by providing financial assistance to member states of the European Union in economic difficulty.[3] The Commission fund, backed by all 28 European Union members, has the authority to raise up to €60 billion. The EFSM is rated AAA by Fitch, Moody's and Standard & Poor's.[4][5] The EFSM has been operational since 10 May 2010.[6] Programmes[edit] Irish programme[edit] Under the programme agreed between the Eurozone and the government of Ireland, the EFSM wil provide loans of 22.4 billion euros between 2010 and 2013. Portuguese programme[edit] Operations[edit] 2011 inaugural emission[edit] Subsequent emissions[edit] See also[edit] References[edit]
European sovereign debt crisis of 2010–present Long-term interest rates (secondary market yields of government bonds with maturities of close to ten years) of all eurozone countries except Estonia.[1] A yield being more than 4% higher compared to the lowest comparable yield among the Eurozone states—i.e., yields above 6% in September 2011, indicates that financial markets have serious doubts about credit-worthiness of the state.[2] The Eurozone crisis (often erroneously referred to as the Euro crisis) is an ongoing crisis that has been affecting the countries of the Eurozone since early 2009, when a group of 10 central and eastern European banks asked for a bailout.[3] At the time, the European Commission released a forecast of a 1.8 per cent decline in EU economic output for 2009.[3] One researcher has held that this was a combined government debt crisis, a banking crisis and a growth and competitiveness crisis.[4] Causes[edit] Contagion was considered possible. Evolution of the crisis[edit] Debt profile of Eurozone countries
2010 European Union banking stress test exercise A European Union-wide banking stress test exercise has been conducted by the Committee of European Banking Supervisors every year since 2009. The second instance was performed in July 2010. The Council of the European Union (in its economic and financial – ECOFIN – configuration) mandated that Committee so to do, in the aftermath of the global financial crisis which started in 2007. Summary of 2010 results by bank[edit] The 2010 test was the second of its kind, which assesses the financial strength of European banks under different adverse scenarios. This was done in co-operation with the European Central Bank, the European Commission and the national supervisory authorities of the member states. The 2010 results were released on 23 July 2010.[1] Of the 90 banks tested, 7 failed the 6% tier 1 capital ratio threshold: five in Spain (Unnim, Diada, Espiga, Banca Cívica, and Cajasur), one in Germany (Hypo Real Estate), and one in Greece (ATEBank).[2] See also[edit] References[edit]
European Financial Stability Facility The European Financial Stability Facility (EFSF) is a special purpose vehicle financed by members of the eurozone to address the European sovereign-debt crisis. It was agreed by the 27 member states[1] of the European Union on 9 May 2010, with the objective of preserving financial stability in Europe by providing financial assistance to eurozone states in economic difficulty.[2] The Facility's headquarters are in Luxembourg City,[3] as are those of the European Stability Mechanism.[4] Treasury management services and administrative support are provided to the Facility by the European Investment Bank through a service level contract.[5] Since the establishment of the European Stability Mechanism, the activities of the EFSF are carried out by the ESM.[6] Function[edit] The mandate of the EFSF is to "safeguard financial stability in Europe by providing financial assistance" to eurozone states. Lending[edit] Guarantee commitments[edit] Management[edit] Developments and implementation[edit]
Comment le FESF trahit les traités européens Billet invité Le 21 septembre 2010, la Banque Centrale Européenne (BCE) publiait une décision posant les modalités de gestion du compte bancaire du FESF. Le FESF est le Fonds Européen de Stabilité Financière, créé en catastrophe en juin 2010 pour venir en aide à la Grèce, en donnant, à cette aide, une apparence de légalité. Pour mémoire, la fin de l’année 2009 et le premier trimestre 2010 furent marqués par la traumatisante question, pour l’Union européenne, de savoir si elle pouvait, ou devait, sauver l’un de ses membres, la Grèce. Question traumatisante, car, du point de vue politique et juridique, il n’était pas certain, et il ne l’est pas plus aujourd’hui, que la Grèce méritât l’aide de l’Union. Souvenons-nous de la tragédie grecque : pour sanctionner la Grèce et ses 300 milliards d’euros de dettes, représentant pas moins de 120 % de son PIB, les agences de notation décidèrent de dégrader sa note. Que signifie cette règle « no bail-out« ?
Fonds Européen de Stabilité Financière : un "AAA" qui rassure ? 1. Notation Le 16 août 2010, nous avons publié ici même un article présentant le Fonds Européen de Stabilité Financière et rappelant les conditions complexes qui avaient conduit à sa mise en place. A cette occasion, nous relevions que la création de ce SPV destiné à sauver l’Europe, outre qu’elle soulevait des interrogations, ne serait justifiée que par l’attractivité et la sécurité de ses émissions, impliquant ainsi l’obtention de la note maximale (« AAA ») des agences. Cette situation lacunaire vient d’être réglée : le 20 septembre 2010, les trois principales agences mondiales ont attribué à titre provisionnel leurs meilleurs notes aux émissions à venir du FESF (à savoir, AAA pour Fitch, (P)Aaa pour Moody’s et AAA pour Standard & Poor’s). 2. Sur quels critères les agences de notation se sont-elles fondées pour attribuer la meilleure note possible aux titres de dette qui seraient émis par le FESF, potentiellement à hauteur de 440 milliards d’Euros (voire plus en cas de crise aigue) ?
Fonds Européen de Stabilisation Financière Le 27 novembre 2010, le quotidien économique belge L'Echo écrivait que le Fonds européen de stabilité permettra de réagir aux défis lancés à la zone euro. Il reprenait un entretien avec Jean-Claude Juncker, Président de l’Eurogroupe (voir ce terme). « Le fonds tel qu'il existe nous permettra de réagir de façon convenable aux défis qui peuvent être lancés", assurait M. Juncker. Facilité monétaire européenne, Fonds européen de stabilité, fonds de stabilisation européen, fonds monétaire européen…. La terminologie a beaucoup varié et, comme les mots ont un sens, les variations sur le thème de la stabilisation ne sonnent pas uniquement comme des nuances byzantines mais comme de véritables idées antagonistes. La question, au centre de ce débat est celui de la solidarité monétaire européenne. Lors de la création de l’Euro et de la mis en place de l’Accord Monétaire Européen, les Européens répondaient à une invite politique forte. Jusqu’au jour où…. Jusqu’au jour où….
Ireland funding. The end of February exchequer statement, released by the Department of Finance, shows how much money Ireland has drawn from the EU/IMF ‘bailout’. Note 7 shows: Euro Financial Stabilisation IMF Extended Fund Facility Euro Fin. Total It is probably worth having a look at the total €85bn package for Ireland, to see who has promised to lend the money, and – more importantly – when they are getting it. €bn NTMA and NPRF Sweden Denmark Probably easiest if we go through the sources in order. (i) The EFSF is only available to eurozone members, and only backed by eurozone members. (ii) The EFSF needs an AAA rating to raise money as cheaply as possible. (iii) This doesn’t mean that the EFSF has €366bn to lend though. The EFSF issued its first bond on January 25th. Last on the list for the €85bn are the UK, Denmark and Sweden. So, that is where Ireland’s funding is coming from, and how much it is costing.