ESM - European Stability Mechanism

How does the ESM work to keep the #euro safe? Watch below for a quick tour to learn more about the rescue fund 👇 #ESMeuro #stability

💡 Energy security is a key determinant of economic resilience. It has increased in most euro area member states over the last two decades, but disruptions caused by: 🇺🇦 Russia's war in Ukraine ⛈️ Severe weather 🌍 Recent geopolitical developments ...are putting our energy supply security to the test. In the latest #ESMblog, Violeta Klyviene and Matjaz Susec look at the role renewable energy plays in enhancing resilience to energy supply shocks. Read the full blog: https://lnkd.in/dyEny8K2

Since 2022, the ESM - European Stability Mechanism has been an observer of the Network for Greening the Financial System (NGFS). ESM Secretary General Nicola Giammarioli was happy to join the Annual Plenary Meeting during which participants exchanged on a range of questions, experiences, and challenges of common interest both within Europe and internationally. To learn more about ESG efforts at the ESM, read:   👉 2023 ESG Report: https://lnkd.in/dzX4Zv6V   👉 #ESMblog "Mind the gap" https://lnkd.in/diiiiMc7

I'm delighted to share the following Op-ed that I penned together with Pierre Gramegna from the ESM - European Stability Mechanism titled "How the EBA and ESM cooperate to strengthen crisis prevention and navigate an incomplete banking union". It was a great opportunity to explore key issues in more depth, such as how the European Banking Authority (EBA) and ESM can harness their capabilities to ensure crisis prevention and preparedness, as well the role the two Authorities play in building trust in the banking system and managing crises when necessary. Finally, we argue that while stronger policy action on prevention and preparedness is crucial, it falls short of a fully integrated banking union and a unified safety net.   If you would like to read more, click on the following link:https://europa.eu/!WntBcK

“Strengthening cooperation between the EBA and ESM will fortify the European safety net, and ultimately help cement trust and accelerate progress towards a fully-fledged banking union” European Banking Authority (EBA) Chairperson José Manuel Campa and ESM Managing Director Pierre Gramegna come together in our new #ESMblog to discuss how to reinforce their respective institutions’ functions to ensure crisis prevention and preparedness and thus bridge the gap of an incomplete banking union. ✔️ The EBA as regulator and transparency data hub: through regular ad hoc risk assessments, transparency exercises, and EU-wide stress tests, the EBA enhances market discipline and contributes to crisis prevention. ✔️ The ESM as insurance, and fire-fighter: the permanent crisis resolution mechanism for the euro area, the ESM closely monitors economic and financial conditions across its member states. By identifying tail risks and vulnerabilities, it remains ready to intervene when needed. Collaboration between institutions can help sharpen the ability to detect risks, respond promptly to crises, and prevent crises from unfolding. The EBA and the ESM are committed to deepening their collaboration, strengthening their analytical capabilities, maximising the effectiveness of their tools, and investing in human capital. Read the blog: https://ow.ly/MJ1a50SCYqN

📣 We're hiring! We are looking for a Financial Sector and Market Analyst to join the ESM. 👉Find out more about this opportunity: https://lnkd.in/dnu-tSdE

🤖" The impact of #AI on our daily work" was the focus of the first interinstitutional #EUSummerSchool the ESM participated in from 9 to 11 July and hosted by the University of Luxembourg. The event was part of the High-Level EU interinstitutional Initiative to increase the attractiveness of Luxembourg, including through learning experiences. The ESM’s HR division was part of the EU working group organising this event. 👨🏻🏫ESM’s Senior Business Strategy Officer Josselin Hébert led a workshop on Microsoft Copilot, where he also detailed the implementation of Copilot at the ESM. He also touched on a prototype developed internally at the ESM, aiming at democratising access to data, leveraging on large language models. ⭐Accompanying him as participants were ESM's: Fabio Alberto Comazzi, Markus Sewenig, Filipe Janeiro, and Martin Rohár. 🙏This first Luxembourg Summer School provided an opportunity for people from all the institutions in Luxembourg to gather for the first time in a community of ideas and experiences, and to learn from each other, while enhancing the cooperation with the country’s university and authorities. #ESMeuro

🌈It's time for Pride! At the ESM, we strive to live by our values on a daily basis. To us, diversity and inclusion is a direct, felt-experience. A conscious decision to accept, respect, and honour ourselves and each other. Each year, ESM colleagues look forward to taking part in local Luxembourg Pride festivities here in Luxembourg. Last week's Luxembourg Pride Run and Rosa Lëtzebuerg Equality March were no exceptions! In high spirits, donned in characteristic rainbow colours, colleagues gathered in the capital and in Esch-sur-Alzette to celebrate and support the undeniable dynamism of our vibrant and beautifully diverse community. We continue to strive for a more open, fair, and just future for all. And we are proud to celebrate in unison during Pride Month. And to show up as our true selves at work, every other day of the year. #UnitedInDiversity #LuxembourgPride

💡 How do investors and dealers approach trading EFSF and ESM bonds in secondary markets? ESM Senior Funding Derivatives and Market Analyst Marko Mravlak with Martin Hillebrand, Lorenz Breitsamter and Peter Schwendner dissuss this question in the latest ESM Working Paper “Investor Activity in EFSF/ESM secondary bond markets”. The authors look into the trading dynamics of these bonds from 2014 to 2020, exploring the roles of different market participants and the impact of digital trading platforms. They discovered that private sector investors, particularly fund managers, significantly increased their presence in the market, making bold trades that carry high risks due to their large size or the bonds' extended maturities. In addition, the paper uncovers a fascinating pattern observed during the Covid pandemic: investors initially withdrew their capital, only to swiftly re-enter the market as they reassessed the risks involved. This behaviour underscores the stabilising influence of private capital in turbulent times. Read the paper https://lnkd.in/evcCgTF3 Non-technical summary https://lnkd.in/efrqEcVb

Yesterday, ESM Managing Director Pierre Gramegna delivered the 2024 Robert Triffin Lecture, organized by The Bridge Forum Dialogue in collaboration with the University of Luxembourg, the European Parliament, and the Robert Triffin International Foundation. Drawing on lessons from history, Mr Gramegna highlighted how past crises ultimately served as catalysts for deeper integration, thereby forging a stronger and more resilient EU and euro area. As Europe faces new challenges, including geo-economic fragmentation, climate change, and population ageing, he emphasized the importance of developing EU-level solutions to address emerging risks and financial needs. Mr Gramegna highlighted several proposals that have been made to finance challenges at the European level and to strengthen Europe’s institutional architecture further: 🔹 Support to countries outside the euro area (e.g. Ukraine); 🔹 Provision of a credit line for defence and security expenditures; 🔹 Aggregation of all European safe assets under the same name; 🔹 Financing of investments; 🔹 Creation of a central fiscal capacity. He then discussed what role the ESM could potentially play. To explore his insights, read the full speech https://lnkd.in/d-CukVWa