
Contents
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Introduction Introduction
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An Overview of the Crisis-Induced Developments An Overview of the Crisis-Induced Developments
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The Setting-up of Financial Mechanisms The Setting-up of Financial Mechanisms
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The European Financial Stabilisation Mechanism The European Financial Stabilisation Mechanism
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The European Financial Stability Facility The European Financial Stability Facility
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The European Stability Mechanism The European Stability Mechanism
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The ECB’s Interventions to Tackle the Crisis The ECB’s Interventions to Tackle the Crisis
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Bond-buying programmes Bond-buying programmes
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Other monetary policy instruments Other monetary policy instruments
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Enhanced Oversight of National Fiscal and Economic Policy Enhanced Oversight of National Fiscal and Economic Policy
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The amendments to the Stability and Growth Pact The amendments to the Stability and Growth Pact
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The amendments to the preventive arm of the SGP The amendments to the preventive arm of the SGP
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The amendments to the corrective arm of the SGP The amendments to the corrective arm of the SGP
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The new legislation on macroeconomic imbalances The new legislation on macroeconomic imbalances
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Uniform requirements for budgetary frameworks Uniform requirements for budgetary frameworks
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Enhanced economic coordination and surveillance in the Euro area Enhanced economic coordination and surveillance in the Euro area
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Enhanced enforcement of the SGP in the Euro area Enhanced enforcement of the SGP in the Euro area
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The correction of excessive macroeconomic imbalances in the Euro area The correction of excessive macroeconomic imbalances in the Euro area
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The balanced budget rule The balanced budget rule
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Enhanced surveillance of ailing Euro area Member States Enhanced surveillance of ailing Euro area Member States
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Enhanced budgetary surveillance in the Euro area Enhanced budgetary surveillance in the Euro area
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Enhanced Financial Market Regulation and Supervision Enhanced Financial Market Regulation and Supervision
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The common financial framework for all EU Member States The common financial framework for all EU Member States
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Enhanced oversight of the financial system Enhanced oversight of the financial system
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The enhanced Union regulatory framework The enhanced Union regulatory framework
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The Banking Union The Banking Union
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The Single Supervisory Mechanism The Single Supervisory Mechanism
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The Single Resolution Mechanism The Single Resolution Mechanism
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The Capital Markets Union The Capital Markets Union
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The Legal Implications of the Crisis-Induced Developments The Legal Implications of the Crisis-Induced Developments
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Issues of Legal Principle Issues of Legal Principle
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The problem of legislative fragmentation and the varying legal form of Union action The problem of legislative fragmentation and the varying legal form of Union action
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Problems of transparency and complexity Problems of transparency and complexity
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The inflexibilities of the EU’s governance architecture and the institutional implications of the chosen methods of action The inflexibilities of the EU’s governance architecture and the institutional implications of the chosen methods of action
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The Varying Degree of Economic Integration within the EU The Varying Degree of Economic Integration within the EU
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What Next for the EMU? The Proposals Emanating from the EU Institutions What Next for the EMU? The Proposals Emanating from the EU Institutions
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Conclusion Conclusion
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2 The Crisis-Induced Developments in the Economic and Monetary Union
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Published:April 2020
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Abstract
This chapter looks at the crisis-induced legal, institutional, and economic developments within the Economic and Monetary Union. It consists of two parts. First, there will be a brief sketch of the crisis-related developments. These include the setting-up of financial mechanisms, the European Central Bank’s interventions to combat the crisis, the enhanced oversight of national fiscal and economic policy, and the increased supervision over the financial sector. Second, there will be a ‘first assessment’ of their constitutional and structural implications. Two sets of issues will be examined here: issues of legal principle; and the bearing of the enacted measures on European economic integration. Three key arguments will be made in this chapter. First, it will be argued that the measures enacted have led to legislative fragmentation and have exacerbated problems of transparency and complexity which already existed in this area. Second, it will be shown that the chosen form of action has consequences for institutional balance in the EU, democratic control, and judicial review. Third, it will be argued that the enactment of measures which are only applicable to Euro area Member States has served to deepen economic integration within the Euro area and to further differentiate it from economic integration in non-Euro area Member States. Further, certain areas of the single market have integrated more deeply in the Euro area. It will be concluded that the various reforms which have been implemented have strengthened the EU economic governance framework from a legal, institutional, and economic perspective.
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