Reinforcing economic governance and elevating economic growth cannot exclude the possibility of crises. We would all agree that, even with the best fire-proof materials and state-of-the-art alarms, it is still prudent to employ a fire service. Thus the third part of the package – the creation of the ESM – is appropriate.
However, it should be underscored that the ESM is for the last resort. Its purpose is to provide temporary bridge funding to solvent but temporarily illiquid countries in financial difficulties, with the aim to create breathing space to implement a deep adjustment programme to correct imbalances and regain market access.