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How Can Eurobonds Be Legally Implemented into European Law?

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  • Kämmerer Jörn Axel

    (Bucerius Law School, 20355 Hamburg, Germany)

Abstract

This contribution examines to what extent and under what conditions the various proposals for Eurobonds may be considered to be in accordance with European law (especially Art. 125 TFEU) and the national (constitutional) law of the Member States. It finds that their admissibility primarily depends on the degree to which these proposals would be able to curb debtor moral hazard, which in turn depends on the liability regime chosen: joint and several or pro rata liability. We conclude that most types of Eurobonds would require a Treaty amendment, whose political feasibility is questionable.

Suggested Citation

  • Kämmerer Jörn Axel, 2016. "How Can Eurobonds Be Legally Implemented into European Law?," Review of Law & Economics, De Gruyter, vol. 12(3), pages 585-604, November.
    • Handle: RePEc:bpj:rlecon:v:12:y:2016:i:3:p:585-604:n:6
    DOI: 10.1515/rle-2016-0044
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    References listed on IDEAS

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    1. Jeromin Zettelmeyer & Christoph Trebesch & Mitu Gulati, 2013. "The Greek debt restructuring: an autopsy [Greek bond buyback boondoggle]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 28(75), pages 513-563.
    2. Jakob von Weizsäcker & Jacques Delpla, 2011. "Eurobonds- The blue bond concept and its implications," Policy Contributions 509, Bruegel.
    3. Jakob von Weizsäcker & Jacques Delpla, 2010. "The Blue Bond Proposal," Policy Briefs 403, Bruegel.
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    More about this item

    Keywords

    Eurobonds; TFEU; sovereign debt; moral hazard; bailout;
    All these keywords.

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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