European governments set up a full-time 500 billion-euro ($648billion) fund to aid debt-swamped countries and, not for the firsttime in the three-year crisis, expressed confidence that the extrafinancial muscle won't be needed anytime soon.

Finance ministers from the 17 euro countries declared theEuropean Stability Mechanism operational, while saying that Spain,its biggest potential near-term customer, isn't on the verge oftapping it. Decisions were also put off on Greece's next aidpayment and on an assistance program for Cyprus.

Creation of the ESM “makes the strategy of member statescredible and equips the euro area with much better tools toappropriately respond to future crises,” Luxembourg Prime MinisterJean-Claude Juncker told reporters in Luxembourg today before ameeting of euro finance chiefs that began at 5 p.m.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.