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Which bailout funds have been in play and what is their role?

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Show 1 Answer (Answer provided by Roman Hardgrave)
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Fixed!

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Show 1 Answer (Answer provided by Roman Hardgrave)
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Fixed! Thanks for the heads up.

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Show 1 Answer (Answer provided by Ion Sterpan)
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The ESM (and earlier the EFSF) is not a branch of the ECB. Unlike the ECB, the ESM performs the function of lender of last resort to governments, not to private banks. This being said, having different organizations with significant overlapping in functions is not necessarily a bad idea. This ensures competition in the service of elaborating and monitoring conditionalities applied to borrowing governments. One the other hand, when a bailout was needed, if ever, they could leverage each other.

Thank you. I feel that when it comes to situation such as "The Last Resort", it has to be The Only One. Having competition for such entity might not be right. In the case of Euro zone where multiple fiscal policy is creating problem and we are arguing for the need of fiscal union, same might be applicable for the role of The Last Resort. Please comment.

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