The European Union has launched a new permanent fund whose sole purpose is bailing out endangered economies.

The European Stability Mechanism (ESM) will have the ability to lend a nation up to 500 billion euros ($650 billion U.S.) starting in 2014. The ESM will phase out the European Financial Stability Facility. The group will be headed by the Prime Minister of Luxembourg.

Out of the 27 nation Eurozone, the largest contribution is going to come from Germany. Europe’s biggest economy will contribute 27% of the total fund (or $135 billion euro.)

Critics, however, believe that even at $500 billion euro the fund will not be enough to save the Eurozone.

“The real concern is that if Italy becomes involved,” Sarah Hewin, head of global research for Standard Chartered told the BBC, “Even 500 billion euros isn’t enough to cover Spain and Italy for a full three-year [bailout].”