Financial instruments

Most of the financial instruments were initiated by either the EU 28 or the Euro 19. The European Commission and other European institutions are automatically involved if an instrument is introduced further to a decision by the EU 28. This is laid down in the Treaty on the Functioning of the European Union (TFEU). The Commission and other EU institutions are not automatically involved in instruments introduced further to a decision by the Euro 19. What role the institutions of the EU will play in each instrument is laid down in the intergovernmental agreement between the euro countries.

In addition to instruments initiated by the EU 28 and the Euro 19 there are a number of supplementary financial instruments:

  • bilateral support from one country to another;
  • the purchase of government bonds by the European Central Bank (ECB);
  • assistance from the International Monetary Fund (IMF).

In most cases, assistance from the IMF is linked to the use of a financial mechanism initiated by the EU 28 or the Euro 19, such as the European Financial Stabilisation Mechanism (EFSM) or the European Financial Stability Facility (EFSF).