Economy World

European Stability Mechanism: green light from the French Parliament

The French Senate adopted Tuesday by a large majority the creation of the European Stability Mechanism (MES), Western agencies reported.

The initiative was approved by 169 votes in favor and 35 against. The Socialists abstained.

On 21 February, the National Assembly gave its approval to MES. The French government, the first among European firms, began the process of ratification of the Mechanism February 8.

The total capital of MES is set at 700 billion euros. Its entry into force is planned for July 2012 if ratified by states representing 90% of subscribed capital.

Participation in the mechanism this year will cost 6.5 billion euros in the French budget, which will cause an increase in public debt.

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