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The new fund will enjoy €620 billion in guarantees (Photo: Wikipedia)

EU agrees new €500 bn permanent bail-out fund

EU finance ministers on Monday (20 June) in Luxembourg put the finishing touches on the eurozone's massive permanent bail-out fund, giving it an effective lending capacity of €500 billion.

To establish the new European Stability Mechanism (ESM), intended to replace the temporary €440 billion European Financial Stability Fund (EFSF) created last year, states will offer €620 billion in credit guarantees and a full €80 billion in cash.

EU states agreed in March this year that the new...

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The new fund will enjoy €620 billion in guarantees (Photo: Wikipedia)

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