Policy Conditionality attached to ESM financial assistance

2020 ◽  
Author(s):  
Ulrich Forsthoff ◽  
Nathalie Lauer
Keyword(s):  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Financial Assistance ◽  
Central Component ◽  
Sovereign Debt Crisis ◽  
Angela Merkel ◽  
The Subject ◽  
European Stability Mechanism ◽  
Intense Debate

‘If the euro fails, Europe fails.’ This dictum of the German Chancellor, Ms Angela Merkel, from 2012 marks the importance that the sovereign debt crisis and its solution were accorded in political discourse and action. The European Stability Mechanism (ESM) and its predecessor, the European Financial Stability Facility (EFSF), are a central component of the strategy put in place by the euro states to overcome the crisis. The creation of these institutions and the policies pursued by them have been the subject of intense debate.

Die fiskalpolitische Integration

2021 ◽  
Author(s):  
Lisa Kanzler
Keyword(s):  
Constitutional Law ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Academic Discourse ◽  
Lisbon Treaty ◽  
Sovereign Debt Crisis ◽  
Legal Studies ◽  
Budgetary Policy ◽  
The Subject ◽  
German Constitutional Law

In the course of the financial and sovereign debt crisis, the academic discourse in European legal studies shifted to questions of economic, monetary and budgetary policy, quickly focusing on issues of solidarity-based distribution of sovereign debt, respectively its communitarization. Against the background of these diverse debates, this paper examines the integration potentials of the Lisbon Treaty with respect to fiscal integration. In doing so, it approaches the subject of the study by elaborating its integration potential, which is then measured against the standards of both primary law and German constitutional law.

Ireland: The Private Is Political

2017 ◽  
Author(s):  
Martin Sandbu
Keyword(s):  
Economic Policy ◽  
Financial Aid ◽  
International Monetary Fund ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Borrowing Costs ◽  
Set Up ◽  
The Cost

This chapter examines the case of Ireland's sovereign debt crisis. It was six months after Greece had been subjected to the troika's tutelage in return for a vast bridge loan, and the eurozone had set up a rescue fund in case other euro states lost access to market funding. Dublin's deficit was on course to hit an incredible 31 per cent of GDP, most of it due to the cost of bailing out collapsing Irish banks. Rumours were rife that Ireland was about to become the first to apply to the new European Financial Stability Facility (EFSF) for financial aid, which would place Irish economic policy, too, under the troika's whip. But even with Dublin's borrowing costs soaring and International Monetary Fund (IMF) officials spotted in the capital, one frazzled government minister after another denied that a eurozone rescue was imminent.

scholarly journals The Five Presidents’ Report: An Assessment of the Measures Proposed to Complete Europe’s Economic and Monetary Union

2021 ◽  
Vol 8 (2) ◽  
Author(s):  
Michael Whiteman
Keyword(s):  
Monetary Union ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Deposit Insurance ◽  
Debt Crisis ◽  
Legal Framework ◽  
Economic And Monetary Union ◽  
Sovereign Debt Crisis ◽  
European Sovereign Debt Crisis ◽  
Cyclical Policy

The Five Presidents’ Report presents a range of actions to complete Europe’s Economic and Monetary Union. This article examines whether the Five Presidents’ Report will lead to significant beneficial reforms, having regard to the European sovereign debt crisis and the legal framework of the Economic and Monetary Union (EMU). The article discusses the background to the production of the Five Presidents’ Report, including how preceding reports responded to the European sovereign debt crisis. The proposals to create a European Deposit Insurance Scheme (EDIS), European Fiscal Board (EFB) and a Eurozone Treasury are focussed upon in this article. The article concludes that the measures proposed in the report do not go far enough towards establishing financial stability in the Eurozone. A key criticism is that counter-cyclical policy has not been the focus of the report’s recommendations on fiscal matters.

Modelling the Sovereign Debt Crisis in Europe

2011 ◽  
Vol 217 ◽  
pp. F37-F45 ◽  
Author(s):  
Dawn Holland ◽  
Simon Kirby ◽  
Ali Orazgani
Keyword(s):  
Euro Area ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Government Debt ◽  
Financial Assistance ◽  
Sovereign Debt Crisis ◽  
Bond Yields ◽  
Debt Sustainability ◽  
Temporary Rise ◽  
The Impact

This note examines the impact of rising bond yields in certain Euro Area countries on debt sustainability. It concludes that without the financial assistance of the bailout packages, government debt in Greece would clearly have been unsustainable, while Ireland and Portugal would have been extremely vulnerable. We also examine the case of vulnerable countries which have not received bailouts — Italy, Spain and Belgium. We conclude that while they can absorb some temporary rise, as has been seen in recent weeks, a significant further sustained rise — more than 100–200 basis points — would call their solvency into question in the absence of financial assistance.

Financial Stability as the Objective of the Banking Union

2020 ◽  
Vol 17 (2) ◽  
pp. 155-183
Author(s):  
Jonathan Bauerschmidt
Keyword(s):  
European Union ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Banking Union ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Legislative Measures

The European financial and sovereign debt crisis has fundamentally transformed the banking landscape in the European Union. In order to break the dependence between banks and sovereigns, the European legislator has created a Banking Union. The objective of these legislative measures is financial stability. How can this term be understood and what is the significance of financial stability for the Banking Union? This contribution aims to answer these questions

European Economies Stability Faced With Potential Outburst of Sovereign Debt Crisis. An Empirical Study Using Neural Network

2013 ◽  
Vol 12 (2) ◽  
pp. 3255-3260
Author(s):  
Stelian Stancu ◽  
Alexandra Maria Constantin
Keyword(s):  
Neural Network ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Banking System ◽  
Sovereign Debt Crisis ◽  
European Level ◽  
Continuous Growth ◽  
Economic Context ◽  
European Economies ◽  
The Impact

Instilment, on a European level, of a state incompatible with the state of stability on a macroeconomic level and in the financial-banking system lead to continuous growth of vulnerability of European economies, situated at the verge of an outburst of sovereign debt crises. In this context, the current papers main objective is to produce a study regarding the vulnerability of European economies faced with potential outburst of sovereign debt crisis, which implies quantitative analysis of the impact of sovereign debt on the sensitivity of the European Unions economies. The paper also entails the following specific objectives: completing an introduction in the current European economic context, conceptualization of the notion of “sovereign debt crisis, presenting the methodology and obtained empirical results, as well as exposition of the conclusions.

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