EFSM revised to shield non-euro area countries from risk
EU News 217/2015
4 July 2015
627/15
On 4 August 2015, the Council approved a regulation amending the European Financial Stabilisation Mechanism (EFSM) in order to protect non-euro area member states from any risk arising from financial assistance given to a euro area country.
This principle was endorsed on 17 July 2015 by a joint statement of the Commission and the Council. It was agreed along with a decision to grant €7.16bn in short term financial assistance to Greece under the EFSM.
Specifically, the regulation ensures that financial assistance from the EFSM to a euro area member state will only be granted if legally binding provisions are in place guaranteeing that non-euro area member states are immediately and fully compensated for any liability they may incur as a result of a failure by the beneficiary to repay the financial assistance in accordance with its terms.
Source and additional information:
http://www.consilium.europa.eu/en/press/press-releases/2015/08/04-efsm-revised-shield-non-euro-area-countries-from-risk/