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Journal Article

Guest editorial: The no-bailout clause and rescue packages

01 Aug 2010-Common Market Law Review (Kluwer Law International)-Vol. 47, Iss: 4, pp 971-986
About: This article is published in Common Market Law Review.The article was published on 2010-08-01 and is currently open access. It has received 60 citations till now. The article focuses on the topics: Bailout.
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MonographDOI
01 Jan 2013
TL;DR: In this paper, two layers of the European economic constitution are discussed, and the authors propose a framework for the analysis of the economic crisis and the response to the crisis, as well as the reform of the macroeconomic constitution.
Abstract: Part I. Setting the Scene: 1. Introduction: framework of the analysis 2. Two layers of the European economic constitution 3. Towards the crisis: an economic narrative 4. Responses to the crisis Part II. Constitutional Mutation: 5. Constitutionality of European measures 6. Realignment of the principles of the macroeconomic constitution 7. Democracy and social rights Part III. What Next?: 8. Initiatives on the table.

112 citations

Journal ArticleDOI
TL;DR: In this article, the authors examined national parliamentarians' approval of the increased budgetary capacity of the European Financial Stability Facility (EFSF) in autumn 2011 and found that the financial position of a state (creditors versus debtors) does not explain the patterns of support and opposition.
Abstract: This article examines national parliamentarians’ approval of the increased budgetary capacity of the European Financial Stability Facility (EFSF) in autumn 2011. Following the analysis of vote outcome and plenary debates in 11 euro states, it is found that the financial position of a state (creditors versus debtors) does not explain the patterns of support and opposition. Rather, two other factors account for these differences: Euroscepticism, and the government and opposition cleavage. In particular, whereas Eurosceptic MPs voted and argued against the EFSF, the parliamentary majorities supported it. Surprisingly, although the legal basis of the EFSF draws on solidarity among the European Union Member States, the supporters of the EFSF did not refer to this principle in their speeches but rather to pragmatic considerations such as national economic interests.

71 citations


Cites background from "Guest editorial: The no-bailout cla..."

  • ...Viewed from this perspective, the EFSF would not breach the no-bail-out clause (Louis, 2010; Seyad, 2010; Haede, 2009): first, because the financial assistance offered to member states would only be temporary due to the extraordinary character of the situation; and second, because Article 122 does…...

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  • ...However, proponents of the EFSF argued that Article 122 of the Lisbon Treaty should be seen as a counterweight to the provision forbidding the bail-out rule (Louis, 2010)....

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  • ...Finally, the EFSF would constitute a mechanism that pursued solidarity in a spirit of positive conditionality (Louis, 2010, pp. 982–3)....

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  • ...Viewed from this perspective, the EFSF would not breach the no-bail-out clause (Louis, 2010; Seyad, 2010; Haede, 2009): first, because the financial assistance offered to member states would only be temporary due to the extraordinary character of the situation; and second, because Article 122 does not explicitly prohibit financial assistance, and the provision is relatively open regarding the means by which it could be provided....

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Journal ArticleDOI
TL;DR: The European Court of Justice (ECJ) gave the go-ahead for the euro area's permanent emergency instrument, the European Stability Mechanism (ESM), on 27 November 2012.
Abstract: On 27 November 2012, the European Court of Justice (“the Court”) rendered its judgment in the Pringle case. Sitting as a plenum, which is extremely rare, the Court did what had been expected. Just as the Bundesverfassungsgericht (German Federal Constitutional Court or BVerfG) had done two months earlier, it gave the go-ahead for the euro area's permanent emergency instrument, the European Stability Mechanism (“ESM”). With this decision, the possibility of granting assistance to financially distressed euro area Member States has now been secured for the future.

36 citations