ESM ready for crucial test in 2013

Europe’s new and improved bail-out vehicle, the European Stability Mechanism, is set to take over from the European Financial Stability Facility to deal with any new sovereign bail-outs this year. But although the ESM has a simpler structure than the often confusing EFSF, its task will not be easy. It has to contend with an enormous borrowing requirement and a tough economic outlook for the Eurozone. Tessa Wilkie reports.