ESM:GLOBAL FRAGMENTATION ON THE AGENDA OF 8TH JOINT RFAS RESEARCH SEMINAR

 

GLOBAL FRAGMENTATION ON THE AGENDA OF 8TH JOINT RFAS RESEARCH SEMINAR 16 May 2024 ESM Press Release no. 7 The 8th Joint Regional Financing Arrangements (RFAs) Research Seminar starts today in Luxembourg.  The two-day hybrid seminar will examine the economic and financial risks associated with global fragmentation. This event is organised jointly by the ASEAN+3 Macroeconomic Research Office (AMRO), the European Stability Mechanism (ESM), and Latin American Reserve Fund (FLAR). This year’s seminar comprises three sessions, exploring the following topics: (i) tools and methodologies for effectively measuring and detecting fragmentation risks; (ii) the regional impact of geopolitics on trade, supply chains, and economic stability; and (iii) financial implications of fragmentation in terms of capital flows, sovereign funding costs, and debt challenges.  This will be followed by a policy roundtable, where the participants will discuss strategies, policies, and the role of global cooperation in mitigating risks posed by fragmentation. The three co-organising institutions launched this series of research seminars in 2017. This annual event offers the RFAs a platform to exchange views with each other and academics, policymakers, economists from central banks and finance ministries, as well as representatives from international financial institutions on issues relevant to RFAs’ operations. The next opportunity for the RFAs to meet will be the 9th RFA High-level Dialogue in October 2024 in Washington DC on the occasion of the IMF/World Bank Annual Meetings. ------------ Media contacts: Anabela Reis Deputy Head of Communication, European Stability Mechanism (ESM) a.reis@esm.europa.eu Lynn Tan Communications Officer, ASEAN+3 Macroeconomic Research Office (AMRO) lynn.tan@amro-asia.org Felipe Buitrago Manager of Communications and Institutional Relations, Latin American Reserve Fund (FLAR) fbuitrago@flar.net     About the ESM The European Stability Mechanism (ESM) has the mandate to preserve financial stability in the euro area by providing financial assistance to Member States with severe financing problems. It is a permanent inter-governmental institution, operating since October 2012. The shareholders of the ESM are the 20 euro area Member States. All financial assistance to Member States is linked to appropriate conditionality. The ESM finances its assistance by issuing bonds and other debt instruments. It has a total subscribed capital of approximately €700 billion, which comprises €80 billion in paid-in capital and €624 billion in committed callable capital. The ESM’s maximum lending capacity is €500 billion.