This article presents a comparative study of the Troubled Asset Relief Program (TARP), established by the U.S. Treasury during the 2008 financial crisis, and the European Stability Mechanism (ESM), a permanent bail-out fund established by the European Union (EU) in 2012. The article begins by introducing the European Union and the Sovereign Debt Crisis briefly, and discusses TARP and its impact on the United States economy. Then the article summarizes the evolution of ESM along with the bail-out programs that have been provided by ESM and its predecessors. The article then outlines the similarities and differences between ESM and TARP, particularly in the accountability structures of the two programs, and finally, analyzes the current situation in the European Union and how the region could achieve sustainable stability.
