Chronicle of Essential Legal Bases of the ESF

January 2022

The Stabilization Fund Act and the Economic Stabilization Acceleration Act come into effect. 
Stabilization measures under the Economic Stabilization Fund could initially only be granted until December 31, 2021. The change of the act made it possible to grant stabilization measures until June 30, 2022, provided they had been applied for by April 30, 2022. 
The legislative amendment also limited the ESF's authorization to grant guarantees for debt instruments and established liabilities issued by companies from March 28, 2020 to June 30, 2022 to up to € 100 bn (previously up to € 400 bn for debt instruments and established liabilities issued from March 28, 2020 to December 31, 2021).
In addition, the amendment reduced to € 50 bn (previously € 100 bn) the authorization for the Federal Ministry of Finance to borrow on behalf of the WSF to cover calls on guarantees and expenses and recapitalization measures.

July 2020

The European Commission authorizes the Federal Government to set up the ESF with a budget of up to € 500 bn.

March 2020

Establishment of the ESF by amending the previous Financial Market Stabilization Fund Act and renaming it the Stabilization Fund Act.
Incorporation of the ESF into the previous Financial Market Stabilization Acceleration Act by amending it and renaming it to Economic Stabilization Acceleration Act.