UPSC Previous Year Question | Prelims GS | 2016

'European Stability Mechanism', sometimes seen in the news, is an

  1. agency created by EU to deal with the impact of millions of refugees arriving from the Middle East
  2. agency of EU that provides financial assistance to eurozone countries
  3. agency of EU to deal with all the bilateral and multilateral agreements on trade
  4. agency of EU to deal with the conflicts arising among the member countries

Answer

Correct Answer

agency of EU that provides financial assistance to eurozone countries

Explanation

The European Stability Mechanism is a permanent crisis resolution mechanism that provides financial assistance to eurozone member countries facing financial difficulties.

Topics: economic institutions, european stability mechanism, eurozone mechanisms, international relations