Amending the EU Treaty: the European Stability Mechanism

On 17 December 2010 the European Council agreed to establish a permanent financial crisis mechanism called the “European Stability Mechanism” (ESM) by means of an amendment to the Treaty on the Functioning of the European Union. This Note looks at the likely ratification path in the UK of the proposed amendment to Article 136 TFEU, as set out in the draft European Council decision of 17 December 2010.