Brussels, 21/08/2015 (Agence Europe) - On 4 August, the Council of the EU used the written procedure to endorse a regulation amending the European Financial Stabilisation Mechanism (EFSM) prepared by the European Commission. The EFSM is managed by the Commission on behalf of the EU28.
On 22 July 2015, the Commission suggested adjusting the EFSM in order to protect non-euro member states from any risk arising from financial assistance given to a eurozone country (see EUROPE 11364). The change in the legislation reflects a joint statement of the Commission and the Council issued on 16 July on the future of the EFSM following its emergency use during the negotiations for the third Greek bailout (see EUROPE 11362).
The regulation ensures that financial assistance from the EFSM to a eurozone member state will only be granted if legally binding provisions are in place guaranteeing that non-eurozone member states are immediately and fully compensated for any liability they may incur as a result of failure by the beneficiary to repay the financial assistance in accordance with its terms. (Elodie Lamer)