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Q82·GS Paper 1 · Prelims 2016

European Stability Mechanism and EU agencies

IREuropean Union institutions and mechanismsFactual singleMediumStatic

Question

'European Stability Mechanism', sometimes seen in the news, is an

Options

a

agency created by EU to deal with the impact of millions of refugees arriving from Middle East

b

agency of EU that provides financial assistance to eurozone countries

Answer
c

agency of EU to deal with all the bilateral and multilateral agreements on trade

d

agency of EU to deal with the conflicts arising among the member countries

Explanation

The European Stability Mechanism (ESM) is an international organization established in 2012 to provide financial assistance to eurozone member states facing economic difficulties. It was created as a response to the sovereign debt crisis in Europe and provides loans and stability support to member states. Option (a) refers to refugee management, which is not the primary function of ESM. Option (c) relates to trade agreements, which is handled by different EU bodies. Option (d) relates to conflict resolution, not financial assistance. > ESM: eurozone financial lifeline established 2012. Answer: (b).

Question details

Year

2016

Paper

GS Paper 1

Question

Q82

Subject

International Relations

Sub-topic

European Union institutions and mechanisms

Type

Factual single

Difficulty

Medium

Nature

Static

Source hint

Current Affairs 2015-2016

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