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Vija Mičūne
The aim of this paper is to provide a deeper overview of the European Stability
Mechanism (further in the text — the ESM) and the main principles
of its operations. The ESM is a complex financial support mechanism,
therefore, in this paper, its operations are described from four perspectives
and, in particular, from the perspectives of attraction of financial resources,
capital structure, lending capacity and governance. If Latvia became a
new member of the eurozone it would be obliged to participate in the
ESM. Therefore, the main principles of the ESM operations should be
comprehended already at this point in time. In the mass media, Latvia`s
potential contribution to the ESM capital is widely discussed as an argument
against joining the eurozone in 2014. However, a deeper examination of
the main principles of the ESM operations reveals that public opinion on
the issue is based on rather shallow information. Operating as a common
borrowing platform, the ESM reduces the costs that could emerge to euro -
zone Member States from borrowing financial resources from the capital
markets to provide assistance to countries hit by financial market turbulences.
The paid-in capital of the ESM being an essential component of
ESM capital structure considerably reduces the borrowing costs. Taking
into consideration the fact that, most likely, the temporary correction key
will be applied for Latvia's initial capital contributions for 12 years after
joining the ESM, the amount of Latvia's paid-in capital share should be
evaluated as appropriate for the present economic and demographic
reality of the country. At the same time, the probability that Latvia will be
obliged to contribute to the callable capital of the ESM is relatively small.
Participating in the ESM governance structure, Latvia will also take part in
the decision-making process over the most important issues regarding the
ESM operations, for example, granting financial assistance to the eurozone
Member States, its type and amount, conditionality, possible increase
of the ESM lending capacity and range of available financial assistance
instruments.
Keywords: callable capital, European Stabilization Mechanism, governance
structure, lending capacity, payable capital.
Ievads
Jau kopš 2009. gada beigām starptautiskās sabiedrības uzmanības lokā
ir Eiropas finanšu krīze un ar to saistītās norises. Situācijā, kad vairākas
eirozonas perifērijas valstis ir nonākušas valsts parāda pārfinansēšanas