Translation of "Bailout fund" in German

Banking union: 'Brussels passes the banking supervisor, but without bailout fund'

Banking union: ‘Brussels passes the banking supervisor, but without bailout fund’

The first is obvious: any bailout fund for financial institutions creates an implicit promise of a bailout.

And that in turn means that banks would be able to fall back on the ESM bailout fund for fresh capital in an emergency.

The bailout fund created last year by the International Monetary Fund and the European Central Bank to enable Greece and other distressed sovereigns, like Ireland and now Portugal, does exactly that, but on the condition that they implement austerity programs to eliminate their deficits over a short period of time.

The countries most at risk of contagion – Portugal, Spain, and Italy – are less vulnerable now in the eyes of the markets; the European Union has established a bailout fund; and the European Central Bank has launched a large bond-buying program.

In front of an ecstatic press corps, they hailed the decision to create a eurozone budget in name, when in reality it is nothing more than a credit line from the European Stability Mechanism (ESM, the bailout fund that gave Greece its loans in 2015).

But how can one explain the fact that the global financial crisis led to no regional banking crises in the US, whereas several eurozone countries’ banking systems are under such stress that their governments have had to rescue them (and then be rescued in turn by the eurozone’s bailout fund)?

And the decision to combine the eurozone’s new bailout fund (the European Stability Mechanism) with the old one (the European Financial Stability Facility) significantly increased the size of the eurozone’s firewall.

In these circumstances, a loan from the European Stability Mechanism – the eurozone’s bailout fund – would merely provide fuel for even higher outflows.

In 2013, once that tranche of funds had been transferred by the European Financial Stability Facility (EFSF), the eurozone’s bailout fund, to its Greek franchise, the Hellenic Financial Stability Facility, the HFSF pumped approximately €40 billion into the four “systemic” banks in exchange for non-voting shares.

The tide of crisis, it seemed, had begun to turn, particularly after the German Constitutional Court upheld the European Stability Mechanism, Europe’s bailout fund.

To be sure, there is always the possibility that Greece’s increasingly dire situation will finally catalyze the creation of a democratically legitimate pan-European bailout fund that provides automatic and unconditional relief to struggling countries.

Germany is putting up billions, Greece is still sinking despite bailout fund, Spain and Italy are teetering on the edge of the abyss, the financial markets are fluctuating between nervousness and hysteria.

In the space of just a few days, the way was to be cleared for a bailout fund for which Germany's share could have run up to €480 billion.

The SRM is the EU's bank resolution institution and has its own bailout fund – the SRF.

On Wednesday, the German Constitutional Court in Karlsruhe gave the green light for the euro bailout fund ESM and the European Fiscal Pact.

The ESM is the successor to the provisional eurozone bailout fund, the EFSF, which it will permanently replace as of 2013 with a view to securing the stability of the single currency.

According to reports in the press the Eurozone countries are considering using the EFSF bailout fund to buy Spanish bonds from private banks in a bid to lower persistently high interest rates.

Because Eurostat data shows that with 250 billion euros Angela Merkel's country is the number one in Europe when it comes to investing in the bailout fund.

Paulson's plea for a permanent bailout fund—the Troubled Asset Relief Program or TARP—was opposed by Congress and ultimately rejected.

Instead of allowing Greece to make a clean break by declaring national bankruptcy, the international banks claimed that there was “no alternative” to calling on the other euro countries to provide a “bailout fund”, supposedly for Greece but in reality for the banking debts, and this was what they got. So now the international banks no longer have just Greece as a debtor ? these individual debts have become the collective debt of all European countries and the EU has become a transfer union as part of the ESM (European Stability Mechanism ? the “bailout” package).