'European Stability Mechanism', sometimes seen in the news, is an
- Aagency created by EU to deal with the impact of millions of refugees arriving from Middle East
- Bagency of EU that provides financial assistance to eurozone countriesCorrect
- Cagency of EU to deal with all the bilateral and multilateral agreements on trade
- Dagency of EU to deal with the conflicts arising among the member countries
Explanation
The 'European Stability Mechanism' (ESM) is an intergovernmental organization established by the eurozone member states. Its primary role is to provide financial assistance to eurozone countries that are experiencing or are threatened by severe financing problems, helping them maintain financial stability within the euro area. It was created in 2012 as a permanent rescue fund, succeeding temporary facilities like the European Financial Stability Facility (EFSF), in response to the European sovereign debt crisis.
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