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.