In other words, we need firewalls that tackle the threats to financial stability and the risk of contagion – both between different sovereign debt markets, but also between sovereign debt markets and other financial market segments. Therefore, the setting up of the European Financial Stability Facility (EFSF) and its successor, the European Stability Mechanism (ESM), represent important additions to the architecture of EMU.
In this context, I very much welcome the decision by the Heads of State or Government to let the ESM enter into force already by July 2012, that is, one year earlier than originally planned.