Amidst growing concerns over the future of Euro zone, the consolidated zone is preparing a combined bailout package of two (2) trillion Euros and leveraging the capital fund, which is sought to provide financial assistance to the financially troubled countries. Via European Financial Stability Facility (EFSF), an instrument under European Stability Mechanism (ESM) combined with the funds from private sector, the Euro zone is sighting to exercise the risky transactions like buying Spanish bonds to provide some relief to the debt ridden nation. The effect of ESM is expected to be seen by 8^th of October with the capacity of 500 billion Euros.

As per analysts, ESM, if approved, is expected to provide the market same the leverage as provided by EFSF, which would have lending power of 2 trillion Euros and the benefiting country is not required to provide or add any capital to the fund for the sought package.

Though most of the Euro members are positive about the leverage options and its viability, some of the nations and Finland with more vibes has been continuously being reluctant to agree with the member countries. Despite strong support from countries like Germany, the disinclination from Finland has delayed the approval of the program. 

The nations like Greece, Ireland, Spain and Portugal are facing tremendous capital flight problems amid ongoing debt crisis. As the public confidence in the financial system of these nations has declined sharply, some analysts foresee the problem to continue till the crisis continues and unless some strong stimulus or rescue packages support the declining economies. As ESM shall be having all the tools and provisions as in EFSF, the leverage or funding is highly expected to provide some relief to the countries in Euro zone facing extreme economic problems. As these packages are expected to enhance money supply in the economies, the problems like increasing unemployment, rising public interest rates and fall in investment are believed to get some grip in the days ahead.