The New Financial Stability Mechanisms and Their (Poor) Consistency with EU Law
Title: The New Financial Stability Mechanisms and Their (Poor) Consistency with EU Law
Author: BIANCO, Giuseppe
Series/Number: EUI RSCAS; 2012/44; EUDO - European Union Democracy Observatory
This working paper examines the institutional reaction to the sovereign debt crisis in Europe. The response has so far consisted of three new financial mechanisms: the European Financial Stabilisation Mechanism, the European Financial Stability Facility, and the European Stability Mechanism. These have each a different legal basis and a specific regime. They display a varying degree of compatibility with EU law. The institutional quick fix employed by Eurozone countries was essentially a resort to private law and traditional international law techniques. This constitutes a setback from the evolution of the EU, at the expense mainly of the European Parliament and the Court of Justice.
Subject: European sovereign debt crisis; European Financial Stabilisation Mechanism; European Financial Stability Facility; European Stability Mechanism; no-bailout clause
Type of Access: openAccess