European Stability Mechanism

The European Stability Mechanism (ESM) is the crisis resolution mechanism for countries of the euro area. The ESM issues debt instruments to finance loans and other forms of financial assistance to the area's Member States. It is an intergovernmental organization under public international law, based in Luxembourg. Its total subscribed capital of €704.8 billion comprises paid-in capital (€80.5 billion) and committed callable capital (€624.3 billion). It has a maximum lending capacity of €500 billion and shareholders are the 19 Eurozone Member States.