The euro zone’s new permanent fund to bail out struggling economies and banks has been formally launched at a meeting of finance ministers in Luxembourg.

The European Stability Mechanism (ESM) will  initially run alongside, and then eventually replace, the European Financial Stability Facility (EFSF).

Europe’s largest economy, Germany, will make the biggest contribution to the fund, about 27% of its total.

Struggling economies will increase from December and there will be more difficulty for ESM from there on.

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