"We hope that the ESM Treaty will be ratified as soon as possible by all euro area countries and will enable the ESM to contribute to further increasing the resilience of the EU banking sector to possible shocks. In addition, we see the institution as one of the guarantors of the macro-financial stability of the euro area, therefore, it is important to ensure that the ESM instruments meet the real needs of the countries against the background of increased risks," said Minister of Finance G. Skaistė.
Amendments to the Treaty Establishing the ESM were agreed at the beginning of 2021, in order to strengthen the role of the ESM in the implementation of financial assistance programmes, as well as to enable the ESM to contribute to the stability of the EU banking sector, if necessary. It is foreseen that the ESM could, if necessary, provide financing to the Single Resolution Fund, should the latter run out of funds in the face of a serious crisis in the EU banking sector. However, the ratification process of the amendments to the Treaty Establishing the ESM in the member countries has not yet been completed.
P. Gramegna took up the position of the Executive Director of the ESM from 1 December 2022. P. Gramegna's visit to Lithuania is part of his agenda to visit all the countries of the euro are after becoming the new head of the ESM.
The ESM provides financial assistance to the euro area countries facing financing problems that have an impact on the financial stability of the euro area as a whole. By becoming a member of the euro area, a country must also become a member of the ESM. Lithuania became a full member of the ESM on 3 February 2015. Currently, 20 euro area countries belong to the ESM.
On 19 October 2021, the Seimas of the Republic of Lithuania ratified the Agreement Amending the Treaty Establishing the ESM and the Agreement Amending the Agreement on the Transfer of Contributions to the Single Resolution Fund.
