The European Stability Mechanism (ESM) is an intergovernmental organization established in 2012 to provide financial assistance to eurozone countries facing economic difficulties. It was created to ensure financial stability within the European Union and to support member states in times of crisis, such as during the European debt crisis. The ESM can offer loans, purchase bonds, and provide financial assistance under strict conditions. It is funded by contributions from its member states and has a total lending capacity of up to €500 billion. The mechanism aims to safeguard the stability of the euro and promote economic growth across the region.