UPSC CSE Prelims
European Union Previous Year Questions (PYQs)
Practice solved questions for European Union with detailed step-by-step solutions, key insights, and trend analysis for UPSC CSE PRELIMS.
Solved Previous Year Questions
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‘European Stability Mechanism’, sometimes seen in the news, is an
Detailed Explanation:
Answer: Option 2 — agency of EU that provides financial assistance to eurozone countries
The European Stability Mechanism (ESM) is an intergovernmental organization established in September 2012 as a permanent financial assistance mechanism for eurozone member states facing financial difficulties. With a maximum lending capacity of €500 billion, it serves as a financial firewall to safeguard the stability of the eurozone by providing emergency loans and financial support to countries experiencing severe economic distress, subject to strict conditions and policy reforms.
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Common questions about European Union in UPSC CSE PRELIMS