Publication

This policy brief aims to contribute to Council deliberations first by clarifying the proper role of Union financial assistance to member states confronted with sovereign debt crises, which should in no case cross the line of providing fiscal transfers; and, second, by outlining the tasks that the new European Stability Mechanism (ESM) should be able to perform if we really want an effective and credible crisis management system for both the eurozone and the European Union. Proper design of the ESM should also allow the debate about euro or, rather, Union-bonds to be brought to a fruitful conclusion.