The European Stability Mechanism hangs by a thread – on France’s credit rating
The ESM and its image
As previously published on IREF Europe: https://en.irefeurope.org/publications/online-articles/article/the-european-stability-mechanism-hangs-by-a-thread-on-frances-credit-rating/
Introduction
The European Stability Mechanism (ESM) backstops the euro. Its nominal size is €705 billion but its lending capacity is lower at €500 billion, and the main condition attached to that is that the member states guarantees of the ESM’s solvency must be good enough […]