Economics Eurozone Crisis Questions
The European Financial Stability Facility (EFSF) was established in 2010 as a temporary financial assistance mechanism for Eurozone countries facing financial difficulties. It aimed to provide financial support to member states in order to maintain stability in the Eurozone and prevent the spread of the crisis. The EFSF raised funds by issuing bonds in the financial markets, which were guaranteed by Eurozone member states. These funds were then used to provide loans and financial assistance to countries in need, such as Greece, Ireland, and Portugal during the Eurozone Crisis. The EFSF played a crucial role in stabilizing the Eurozone and preventing the crisis from escalating further.