European Financial Stability Facility. The EFSF is a special purpose vehicle financed by the members of the EEA to address the European sovereign debt crisis. The EFSF was created to provide financial assistance to member states with unstable economies and was originally established as a temporary measure. However, in October 2010 it was decided a permanent measure was needed, and the European Stability Mechanism (ESM) was established and came into force on October 8, 2012. The ESM is the instrument to finance new programs in response to requests for financial assistance by member states, while the EFSF will continue its ongoing program for Greece, Portugal, and Ireland alongside the ESM.

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