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The 27 member countries converged on the 9th of May 2010 and decided to create a legal instrument called the EFSF. This body was supposed to maintain financial stability of Europe by availing the financial assistance needed by the countries in trouble. This body has the authority to hand out bonds and other debt instruments to states with the backing of the GDMO (German debt management office) in order to amass funds and lend it out to financially troubled nations, do bank recapitalization and buy debts. The handing out of bonds is supported by guarantees from the Eurozone countries according the shares they have in the already paid capital kept in the European central bank. The EU zone has a lending capacity of 440 billion EUR and this amount is guaranteed by all the member countries n togetherness and the amount can be combined with loans of 60 billion EUR from the EFSM. This legal body that was created by the Eurozone countries as a measure to control the European debt crisis is financed by European commission with their collateral being the EU’s budget. The measure also has a guarantee of 250 billion EUR from the IMF that enables them to have financial safety of 750 billion EUR. This gives the European countries a backup plan in case of any sudden falls. The idea seemed to be working well for the European countries because in 2011, November 29th the finance ministers from the countries decided to expand the EFSF. They created new certification procedures that guaranteed 30% of new issues from the countries that were going through financial crisis. This was also in an attempt to increase the EFSF’s intervening power in both primary and secondary bond market. On announcement of the EFSF stocks sky rocketed all over the world because the fears that investors had harbored against the Greek crisis and it spreading were eased off a little. Some stocks even rose up to the highest level in about a year. Within 18 months the European currency experienced its hugest gain but just as fast, it fell to a four year loss in just a week after the phenomenal gain. This four year period came to an end and the Euro got back some of its strength owing to hedge funds and short term investors who developed interest in the currency. This caused the commodity prices to rise up and the Libor dollar stayed at a high for nine solid months. This agreement is also expected to be able to allow the ECB to purchase government debt, a move expected to reduce the total bond yields. These measures caused a sharp fall in the Greek bond yield from more than 10 per cent to just 5% per cent. This was proof that with the right mechanisms in place it was possible to rid the European countries of the European debt crisis.