Saving the Euro, Saving Europe: The Role of Law and Institutions

Saving the Euro, Saving Europe: The Role of Law and Institutions

Constitutional Resilience in Times of Crisis The Responses to the Eurozone Crisis and their Implications on EU and National Constitutional Law Martina Augustin Tbilisi, 01.07.2016 Outline The European Economic and Monetary Union (EMU) Evolution and design Responses to the Eurozone Crisis Increase of budgetary control and financial assistance Constitutional Implications EU and national constitutional law Whats next for the EMU? Reform plans and future scenarios 2

The European Economic and Monetary Union Design the EMU The Monetary Union Single currency overseen by the European Central Bank Art 3(1) lit c) TFEU: exclusive power of the EU in monetary policy The Economic Union The Monetary Union The Economic Union

MS retained power over economic policies Although within certain limits: Art 121(1) TFEU: MS shall regard their economic policies as a matter of common concern [] System of cooperation Multilateral surveillance procedure Excessive deficit procedure 3 EU Crisis Law EMU before the Crisis The Responses Soft system of cooperation 1) Increase of Budgetary Control Mechanisms a) Within the EU

framework b) In intergovernmental law Excessive deficit of several MS: EU rules proved to be ineffective Sovereign debt crisis 2) Financial Assistance a) Loan facilities & Stability Mechanisms b) The Intervention of the European Central Bank Economic Health of single MS affected the whole Union Interconnection between the two sides of the EMU

Asymmetric design of the EMU showed shortcomings 4 EU Crisis Law (I) Budgetary Control Mechanisms 1. Increase of controls at the EU level Six Pack (2011) Aim = increase control over budgetary policies, strengthening of sanction procedure, increase of macroeconomic surveillance Two Pack (2013) MS have to submit budgetary plans, obligation to create national independent fiscal councils Legal basis for reforms = Art 136 and 121(6) TFEU 2. Increase of controls at the intergovernmental level The Treaty on Stability, Coordination and Governance (Fiscal

Compact) Adoption of debt brake rules Escape into intergovernmental law 5 EU Crisis Law (II) Financial Assistance Bilateral aid: rescue packages to Greece International Monetary Fund (IMF) The European Financial Stability Mechanism (EFSM) The European Financial Stability Facility (EFSF) Not enough to ensure the markets The European Stability Mechanism (ESM) International Organisation in Luxembourg Permanent rescue mechanism for Eurozone Members in financial difficulty Element of conditionality: Fiscal Compact Compatibility with Art 125 TFEU? (ECJ Pringle) 6 Implications on EU Law

The Crisis law had an impact on the EMU legal framework 1. Financial Assistance Mechanisms Conditionality of ESM-help 2. Increase of Budgetary Surveillance Stricter sanction mechanisms 3. Conclusion EMU has been strengthened on the cost of MS autonomy Shifts of power to the Executive (Commission, ECB, European Council) Increasing use of intergovernmental Treaties However, there is still no European Economic Union Asymmetry of EMU remains 7

Implications on National Constitutional Law EU membership required constitutional changes Transfer of competences MS shall remain the Master of the Treaties Certain Constitutional Courts adopt EU friendly jurisdiction Principle of openness towards EU law Limits to further integration German Bundestag may NOT transfer its budgetary responsibility National budget autonomy = essential competence of a national state Information and approval rights of national parliaments 8 The future EMU (I) Whats next for the EMU? Response of EU Institutions: 2012 Commission blueprint for a deep and genuine EMU Full banking, fiscal and economic Union

4 Presidents Proposal A Genuine Economic and Monetary Union EU decision-making on national budgets 2015: 5 Presidents Report Builds on the former reform plans, but is more cautious By 2025 joint decision-making on national budgets & economic policies Commission takes steps to strengthen EMU White paper in 2017: advisory European Fiscal Board, complete the Banking Union 9

The future EMU (II) Whats next? Possible future scenarios 1. Further integration on the cost of nation states 2. Unlimited autonomy of the MS in managing budgets and spending Effective EU control over national spending >< the parliaments budgetary autonomy How is it possible to reconcile the two conflicting sides? How can we limit national spending without limiting national democracy? 10

Recently Viewed Presentations

  • Developing institutional strategies to mainstream undergraduate research and

    Developing institutional strategies to mainstream undergraduate research and

    * * * * * * * * * * Transforming the student experience through developing institutional strategies to mainstream undergraduate research and inquiry for all students Mick Healey University of Gloucestershire & Alan Jenkins, Consultant HE Academy "… universities...
  • Wilsden Detective Agency  Homework Project 1  Due in

    Wilsden Detective Agency Homework Project 1 Due in

    Research Boudicca. Design a Roman mosaic . Make a timeline. Make timeline of events in your life using Roman numerals to show the dates. Write a diary. Imagine that your home town has been invaded by Romans. Write a diary...
  • FSAE Intake Manifold - Computer Action Team

    FSAE Intake Manifold - Computer Action Team

    Intake Rules. B8.6.1 In order to limit the power capability from the engine, a single circular restrictor must be placed in the intake system between the throttle an the engine and all engine airflow must pass through the restrictor. B8.6.2...
  • Tax Administration in the Digital Age: Globalization ...

    Tax Administration in the Digital Age: Globalization ...

    Thus, over 40,000 TPs who may not have received refunds they were entitled to, amounting to at least $44 M or $1,274 per TP. Economic Hardship. IRC § 6343/Vinatieri - Release of levy where Economic Hardship. Allowable Living Expenses (ALEs):...
  • Coordinating with Project Manager Cindy Kowalski, PMP Utility

    Coordinating with Project Manager Cindy Kowalski, PMP Utility

    Objective. Consider three non-technical (soft) skills for coordinating with the Project Manager (PM) that can help make the project a success. Discuss the Utility Risk Report and Project Funding to give an understanding of how these tools are used by...
  • IV. Electron Configuration - Madison County School District

    IV. Electron Configuration - Madison County School District

    Ch. 4 - Electrons in Atoms IV. Electron Configuration (p. 105 - 116, 128 - 139) C. Johannesson C. Johannesson A. General Rules Pauli Exclusion Principle Each orbital can hold TWO electrons with opposite spins.
  • T ehnici de vanzare Prezentate de Raluca Felea

    T ehnici de vanzare Prezentate de Raluca Felea

    For instance the customer may not understand or has read about the magnetic forces like that in Magna Bloc. Respond by explaining how the Amway technology is different, superior or what ever the case may be. 4.Lack of confidence." I...
  • Introduction to the New Testament - Employee Web Site

    Introduction to the New Testament - Employee Web Site

    Introduction to the New Testament. The New Testament consists of 27 separate books, written mainly, though not exclusively, by Apostles of the Lord Jesus Christ. These books teach and testify of the ministry and Atonement of Jesus Christ and the...