Representatives from EU member states signed the amending agreements to the Treaty on the European Stability Mechanism and the Single Resolution Fund (SRF) Intergovernmental Agreement on Jan. 27. The amended treaty expands the functions of the ESM, which from being a “state bailout“ fund, to now become a backstop for the bank bailout fund SRF as well. In reality, the bank bailout function was indirectly there, already, as the 2011 Greek crisis demonstrated.
The ESM has a committed and callable capital of nearly €702 billion, of which €80 billion is paid in and the rest callable within a week from member states.
