European Stability Mechanism’, sometimes seen in the news, is an

European Stability Mechanism’, sometimes seen in the news, is an

agency created by EU to deal with the impact of millions of refugees arriving from Middle East
agency of EU that provides financial assistance to eurozone countries
agency of EU to deal with all the bilateral and multilateral agreements on trade
agency of EU to deal with the conflicts arising among the member countries
This question was previously asked in
UPSC IAS – 2016
The European Stability Mechanism (ESM) is an intergovernmental organization established by the Eurozone Member States to provide financial assistance to Eurozone countries experiencing or threatened by severe financing problems. It acts as a financial backstop for the Eurozone.
Option A is incorrect as the ESM’s primary role is financial stability, not refugee management.
Option C is incorrect as the ESM focuses on financial stability, not trade agreements.
Option D is incorrect as the ESM deals with financial crises, not general conflicts among member countries, although financial stress can contribute to tensions.
ESM is a Eurozone agency providing financial assistance to member states in difficulty.
The ESM was established in 2012 as a permanent successor to temporary bailout funds like the European Financial Stability Facility (EFSF) and European Financial Stabilisation Mechanism (EFSM), in response to the sovereign debt crisis in the Eurozone.