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This Library Note provides background reading in advance of the second reading in the House of Lords of the European Union (Approval of Treaty Amendment Decision) Bill [HL] on 23 May 2012. The Bill provides for UK approval of the European Council Decision that enables Eurozone Member States to establish a permanent stability mechanism. This Note sets out the provisions in the Bill and summarises the events that resulted in the introduction of the legislation. It concludes with an outline of the separate Treaty signed by the Eurozone Member States that establishes the stability mechanism.

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