Furthermore, assistance may only be provided to help with liquidity problems, but not solvency problems, as the liability principle would require the creditors to be bailed in, ie a restructuring of debt. The no-bailout clause would also clearly exclude such aid. Moreover, the granting of financial assistance is subject to strict conditions, true to the motto “solidarity against solidarity".
Assistance loans should therefore only be paid if the recipient countries have met the previously agreed conditions. Ultimately, ESM funds can only finance the necessary adjustment process, and thus “buy time". Only economic policy in the affected country itself can treat the root cause.