A few months ago, the Council`s official press release made it clear that « the treaty establishing the revised ESM will enter into force as soon as the 19 ESM member states have ratified it. These include the approval of the parliaments of all Member States. The ratification process begins following an agreement amending the ESM treaty and when important documents relating to the reform of the ESM are the subject of political agreement among all ESM members. This is expected to happen in December 2019. The contract provided for the creation of the organisation if the Member States, which represented 90% of their initial capital requirements, ratify the founding treaty.  This threshold was exceeded with the ratification of Germany on 27 September 2012, when the treaty came into force for the sixteen states that ratified the agreement. The ESM took office at a meeting on 8 October 2012.  A separate treaty amending Article 136 of the Treaty on the Functioning of the European Union (TFUE) to authorise the creation of the ESM in accordance with EU law is due to come into force on 1 January 2013. However, the last of the 27 Member States of the European Union to ratify the amendment, the Czech Republic, did so only on 23 April 2013, which led to its entry into force on 1 May 2013.  An updated EMU reform plan was published in June 2015, which stipulates that the ESM should be implemented in the medium term (between July 2017 and 2025) by an intergovernmental agreement fully integrated into the EU regulatory framework applicable to all euro area Member States, so that the ESM can be more smoothly resolved by EU institutions , under the amended jurisdiction of Article 136 of the Treaty on the Functioning of the European Union.  The agreement on the establishment of a common backstop for the Single Resolution Fund (SRF) in the form of an ESM credit line to replace the old direct recapitalisation instrument, which is expected to come into force as early as January 2022, provides a financial safety net for banking operations within the banking union.
It is therefore also an amendment to the intergovernmental agreement establishing the SRF. This should contribute to the protection of financial stability while strengthening the resilience and crisis management capabilities of the euro area.