The European Union's finance ministers have approved a regulation amending the European Financial Stabilisation Mechanism.
The ministers took Tuesday's action to protect non-euro area member states from any risks caused by financial assistance being given to a euro area country. The new mechanism guarantees that non-euro area member states are compensated for any liability they may incur if the beneficiary fails to repay the assistance.
The EFSM provides aid to EU member states in financial difficulties, and relies on funds raised by the European Commission in the markets under an implicit EU budget guarantee.