The Crisis Response in Europe's Economic and Monetary Union: Overview of Legal Developments

Fordham International Law Journal, Forthcoming

Amsterdam Law School Research Paper No. 2015-11

Amsterdam Centre for European Law and Governance Research Paper No. 2015-01

56 Pages Posted: 11 Apr 2015

See all articles by René Smits

René Smits

ACELG; University of Amsterdam - Amsterdam Center for Law & Economics (ACLE)

Date Written: April 10, 2015

Abstract

The WP analyses the changes to the law of Economic and Monetary Union (EMU) in response to the crisis, and discusses these major changes, their legal form, and the judicial challenges to them. The adaption of economic governance of the EU resulted in incisive regulation of Member States’ budgetary soundness and prudence, and further EU oversight of national economic policies. The European Central Bank (ECB) introduced unconventional monetary policy measures and played a novel role in economic policy setting under the ‘conditionality’ of emergency funding to Member States. The ECB also became the central supervisor in a Single Supervisory Mechanism for the Euro Area’s commercial banks under ‘banking union’. The ‘no bail-out’ clause of the Treaty on the Functioning of the European Union (TFEU) did not prevent the creation of arrangements for the provision of funding to Member States (ESFS, EFSM, ESM). At Union and at Member State level, there were numerous judicial challenges to the crisis response of policy makers. The WP critically analyses the crisis innovations. It calls for further study on the interplay between Member State and Union law, and on international and EU law.

Keywords: economic and monetary union, banking union, unconventional monetary policy measures, European central bank, stability and growth pact, European stability mechanism, outright monetary transactions, Euro area economic governance, equal application of EU law, flexible enforcement

JEL Classification: K33

Suggested Citation

Smits, René, The Crisis Response in Europe's Economic and Monetary Union: Overview of Legal Developments (April 10, 2015). Fordham International Law Journal, Forthcoming, Amsterdam Law School Research Paper No. 2015-11, Amsterdam Centre for European Law and Governance Research Paper No. 2015-01, Available at SSRN: https://ssrn.com/abstract=2592929 or http://dx.doi.org/10.2139/ssrn.2592929

René Smits (Contact Author)

ACELG ( email )

P.O.Box 1030
Amsterdam, 1000 BA
Netherlands

University of Amsterdam - Amsterdam Center for Law & Economics (ACLE)

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

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