ESM staff has prepared the final report on the comprehensive review of the ESM’s lending volume, capital adequacy, and financial assistance instruments. It was presented to the ESM Board of Governors during its Annual Meeting on 20 June 2024.
The objective of the report is to assess whether the ESM financial assistance instruments and lending capacity remain fit-for-purpose in serving ESM Members and the euro area while using the revised or existing ESM Treaty to their full potential. The report is also meant to serve as a recap of the various ESM instruments and to engage in earnest with Members in discussions on whether improvements are needed in light of the prevailing risks and various regional and global challenges, similar to the recently concluded review of the IMF’s precautionary facilities (IMF 2023). Furthermore, it also analyses the impact of the recently agreed reform of the EU's economic governance framework on the ESM instruments.
The views expressed in this report do not necessarily reflect the views of the ESM Board of Governors or Board of Directors.