Abstract

This chapter analyses the role of the European Stability Mechanism (ESM) during
and after the COVID-19 crisis as well as shortly in relation to funding the war in Ukraine. In
specific, the chapter discusses the Pandemic Crisis Support Facility, an assistance instrument
adopted within the ESM that was never used. The new facility is analysed especially in light
of the no bail-out clause of Article 125 TFEU. Furthermore, the failed attempt to amend the
ESM Treaty, which would have made the ESM the common backstop of the Single
Resolution Fund of the Banking Union, is also discussed. It is argued that the ESM has only
had a minor side role in the critical policy juncture presented by the pandemic, while funding
the war in Ukraine might bring about a new role for the ESM.