(LRC Revised)

Number 20 of 2012

EUROPEAN STABILITY MECHANISM ACT 2012

REVISED

Updated to 9 December 2021

Changes to legislation

as of 10 July 2026, this Act is up to date with all changes known to be in force.

This Revised Act is an administrative consolidation of the

European Stability Mechanism Act 2012

. It is prepared by the Law Reform Commission in accordance with its function under

the

Law Reform Commission Act 1975

(3/1975) to keep the law under review and to undertake revision and consolidation

of statute law.

All Acts up to and including the

Finance (European Stability

Mechanism and Single Resolution Fund) Act 2021

(38/2021), enacted 9 December

2021, and all statutory instruments up to and including the

Gaeltacht Act 2012

(Designation of Gaeltacht Language Planning Areas) (No. 4) Order 2021

(S.I. No.

710 of 2021), made 8 December 2021, were considered in the preparation of this Revised

Act.

Disclaimer: While every care has been taken in the preparation of this Revised Act,

the Law Reform Commission can assume no responsibility for and give no guarantees,

undertakings or warranties concerning the accuracy, completeness or up to date nature

of the information provided and does not accept any liability whatsoever arising from

any errors or omissions. Please notify any errors, omissions and comments by email

to

revisedacts@lawreform.ie.

Number

20

of

2012

EUROPEAN STABILITY MECHANISM ACT 2012

REVISED

Updated to 9 December

2021

ARRANGEMENT OF SECTIONS

Section

1. Definitions.

2. Payments by Minister in respect of authorised capital stock of ESM.

3. Payments out of Central Fund.

4. Payments into Exchequer.

5. Privileges and immunities.

6. ESM exempt from requirement to be authorised or reg-ulated.

7. ESM exempt from taxation.

8. Reports by Minister to Dáil Éireann.

9. Expenses.

10. Short title.

SCHEDULE

PART 1

Text of Treaty in the Irish Language

PART 2

Text of Treaty in the English Language

Number

20

of

2012

EUROPEAN STABILITY MECHANISM ACT 2012

REVISED

Updated to 9 December

2021

AN ACT TO FURTHER FACILITATE, IN THE PUBLIC INTEREST, THE FINANCIAL STABILITY OF

THE EUROPEAN UNION BY ESTABLISHING A PERMANENT STABILITY MECHANISM TO ASSUME THE TASKS

OF THE EUROPEAN FINANCIAL STABILITY FACILITY AND THE EUROPEAN FINANCIAL STABILISATION

MECHANISM IN PROVIDING, WHERE NEEDED, FINANCIAL ASSISTANCE TO EURO AREA MEMBER STATES

AND FOR THAT PURPOSE—

(A)TO MAKE PERMANENT PROVISION TO PROVIDE FOR MATTERS RELATING TO THE PARTICIPATION

BY THE STATE IN THE EUROPEAN STABILITY MECHANISM PURSUANT TO THE TREATY ESTABLISHING

THE EUROPEAN STABILITY MECHANISM DONE AT BRUSSELS ON 2 FEBRUARY 2012 BETWEEN THE EURO

AREA MEMBER STATES,

(B)TO PROVIDE FOR MATTERS RELATING TO THE STATE’S SUBSCRIPTION TO THE AUTHORISED CAPITAL STOCK OF THE EUROPEAN STABILITY MECHANISM

IN ACCORDANCE WITH THAT TREATY,

(C)TO PROVIDE FOR PAYMENTS TO BE MADE OUT OF THE CENTRAL FUND OR THE GROWING PRODUCE

OF THAT FUND SO AS TO ENABLE THE STATE TO GIVE EFFECT TO THAT TREATY,

(D)TO PROVIDE FOR ALL DIVIDENDS OR OTHER MONEYS RECEIVED BY THE STATE UNDER THAT

TREATY TO BE PAID INTO THE EXCHEQUER, AND

(E)TO PROVIDE FOR RELATED MATTERS.

[3

rd July

2012]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS

Annotations

Modifications (not altering text)

C1

Application of Act extended (30.10.2014) by

European Stability Mechanism (Amendment) Act 2014

(32/2014), ss. 3, 4, commenced on enactment.

Provision with respect to particular type of instrument and particular entities

3. The legal incidents and effects that the provisions of the Treaty and the Principal

Act comprise shall include the legal incidents and effects arising by virtue or in

consequence of—

(a) the granting of an instrument of the class specified in section 4 , and (b) the

establishment of subsidiary bodies or sub-entities by the ESM the purpose of which

is to finance or implement, or to have vested in them ownership of, the capital instruments

related to the recapitalisation referred to in section 4, and

(b) the establishment of subsidiary bodies or sub-entities by the ESM the purpose

of which is to finance or implement, or to have vested in them ownership of, the capital

instruments related to the recapitalisation referred to in section 4 .

Class of instrument to which section 3 relates

4. The class of instrument referred to in section 3 is an instrument that effects

the direct recapitalisation of a financial institution of an ESM member, being an

instrument added to the list of financial instruments provided for in Articles 14

to 18 by a decision made by the Board of Governors under Article 19.

Annotations

Modifications (not altering text)

C1

Application of Act extended (30.10.2014) by

European Stability Mechanism (Amendment) Act 2014

(32/2014), ss. 3, 4, commenced on enactment.

Provision with respect to particular type of instrument and particular entities

3. The legal incidents and effects that the provisions of the Treaty and the Principal

Act comprise shall include the legal incidents and effects arising by virtue or in

consequence of—

(a) the granting of an instrument of the class specified in section 4 , and (b) the

establishment of subsidiary bodies or sub-entities by the ESM the purpose of which

is to finance or implement, or to have vested in them ownership of, the capital instruments

related to the recapitalisation referred to in section 4, and

(b) the establishment of subsidiary bodies or sub-entities by the ESM the purpose

of which is to finance or implement, or to have vested in them ownership of, the capital

instruments related to the recapitalisation referred to in section 4 .

Class of instrument to which section 3 relates

4. The class of instrument referred to in section 3 is an instrument that effects

the direct recapitalisation of a financial institution of an ESM member, being an

instrument added to the list of financial instruments provided for in Articles 14

to 18 by a decision made by the Board of Governors under Article 19.

ARRANGEMENT OF SECTIONS

Section

1. Definitions.

2. Payments by Minister in respect of authorised capital stock of ESM.

3. Payments out of Central Fund.

4. Payments into Exchequer.

5. Privileges and immunities.

6. ESM exempt from requirement to be authorised or reg-ulated.

7. ESM exempt from taxation.

8. Reports by Minister to Dáil Éireann.

9. Expenses.

10. Short title.

SCHEDULE

PART 1

Text of Treaty in the Irish Language

PART 2

Text of Treaty in the English Language

Number

20

of

2012