ESM Board of Governors approves 2024 Annual Report

 

ESM Board of Governors approves 2024 Annual Report 19 June 2025 ESM Press Release no. 12/2025 The Board of Governors of the European Stability Mechanism (ESM) held its thirteenth Annual Meeting today in Luxembourg. It approved the 2024 ESM Annual Report, including the ESM’s financial statements, and discussed the main developments and key activities of the ESM over the past year. The ESM recorded a net profit of €1.8 billion last year, compared to a net profit of €0.3 billion in 2023. This major improvement was largely driven by higher interest income from securities and reduced realised losses on the sale of securities. It is the highest net profit recorded by the ESM since its inception in 2012. The Board of Governors also followed up on last year’s comprehensive review of the ESM’s maximum lending volume, adequacy of the authorised capital stock, and financial assistance instruments. The ESM proposed refinements to its lending toolkit, mainly related to its precautionary instruments, to support its members as effectively as possible. “At today’s Board of Governors meeting, we continued our collective efforts to ensure that the ESM framework and strategies are fully equipped to address both current and future challenges. The ESM’s crucial role in stabilising the euro area in times of crisis underscores the enduring importance of its mandate in today’s complex global economic environment. Close collaboration between the ESM and its Members is key to maintaining the institution’s capacity to foster economic confidence and strengthen resilience across the euro area,” said Paschal Donohoe, Chairperson of the ESM Board of Governors. “In an environment of increasing global uncertainty and volatility, the euro area and the ESM have remained resilient. This strength is highlighted by the ESM’s excellent financial performance. This would not have been possible without the effective management of the ESM’s paid-in capital.  Mindful of the challenges ahead, the ESM will continue to work with its Members to respond proactively to evolving risks and needs. The ESM remains vigilant, adaptable, and fully prepared to safeguard financial stability across the euro area,” said ESM Managing Director Pierre Gramegna. In today’s meeting, the Board of Governors also appointed Colette Drinan, Tine Debusschere, and Jorg Kristijan Petrovič as members of the ESM Board of Auditors. Colette Drinan, Tine Debusschere, and Jorg Kristijan Petrovič join ESM Board of Auditors 20 June 2025 ESM Press Release no. 13/2025 Luxembourg – The Board of Governors of the European Stability Mechanism (ESM) appointed Colette Drinan, Tine Debusschere, and Jorg Kristijan Petrovič to the ESM Board of Auditors. These appointments, made upon proposals by the Chairperson of the Board of Governors, the Belgian Supreme Audit Institution, and the European Court of Auditors (ECA), respectively, are for non-renewable three-year terms. The Board of Auditors is composed of five members: two appointed upon proposal of the Chairperson of the Board of Governors, two upon nomination by the supreme audit institutions of ESM Members based on a system of rotation, and one upon nomination by the European Court of Auditors. “I welcome the three new members to the Board of Auditors, the independent oversight body of the ESM, which plays a significant role in ensuring the trust of our shareholders and the general public” said Pierre Gramegna, ESM Managing Director. Ms Colette Drinan, Secretary and Director of Audit at the Office of the Comptroller and Auditor General of Ireland, will commence her term on 19 June 2025. She will succeed Ms Lucia Kašiarová, whose mandate ended on 24 April 2025. Ms Drinan has held senior positions in public sector audit, institutional oversight, financial regulation, and international cooperation. Ms Tine Debusschere, Secretary General and Member of the College of the Belgian Court of Audit, will begin her mandate on 8 October 2025. She will replace Mr Giovanni Coppola, whose term concludes on 7 October 2025. Ms Debusschere has held senior positions in public sector audit, policy evaluation, organisational governance, and international cooperation. Mr Jorg Kristijan Petrovič has served as Slovenian Member of the European Court of Auditors since May 2022. He will start his term on 17 December 2025, succeeding to Ms Helga Berger, whose mandate ends on 16 December 2025. Mr Petrovič, formerly First Deputy President of the Slovenian Court of Audit, has experience in auditing public finances and EU institutions. “l would like to express my sincere appreciation to Ms Helga Berger for her outstanding leadership as Chairperson of the Board of Auditors and her excellent cooperation with me and the various departments of the ESM over the past three years. Her diligence, dedication, and expertise have been crucial in further reinforcing the ESM's governance and accountability framework. I look forward to our continued collaboration in the remaining months of her mandate and with her successor, thus building on the expertise of the European Court of Auditors. Allow me to also thank Ms Lucia Kašiarová for her valuable contribution to the Board’s work, including during her tenure as Vice-Chairperson from 27 November 2024 until the end of her mandate. Likewise, I thank Mr Giovanni Coppola for his active role and commitment to the Board’s activities, including as current Vice-Chairperson since 29 April 2025. Their efforts have also supported the further strengthening of the ESM’s oversight framework”, said Pierre Gramegna. The Board of Auditors is an independent body that inspects the ESM accounts and verifies that the operational accounts and the balance sheet are in order. Furthermore, it audits the regularity, compliance, performance, and risk management of the ESM in accordance with international auditing standards and monitors and reviews the ESM’s internal and external audit processes and their results.  (From left to right: Colette Drinan, Jorg Kristijan Petrovič, and Tine Debusschere)             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 €708 billion, which comprises €81 billion in paid-in capital and €627 billion in committed callable capital. The ESM’s maximum lending capacity is €500 billion.