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Is there Life in the Old Dog Yet? Observations on the Political Economy and Constitutional Viability of Common Debt Issuing in the Euro Area

Author

Listed:
  • Amtenbrink Fabian
  • Repasi René

    (Erasmus Universiteit Rotterdam, Netherlands)

  • De Haan Jakob

    (De Nederlandsche Bank NV, Amsterdam, Netherlands)

Abstract

Departing from a political economy analysis of the benefits of common debt issuance by the Eurozone member states, we examine to what extent the various proposals for Eurobonds may be considered admissible under EU law and exemplary national (constitutional) laws, including those of Germany, Estonia, France, Ireland and Poland, from which one can deduce general national constitutional requirements applicable in all Eurozone member states. The medium and long-term potential gains from increased Eurozone stability and improved fiscal discipline must be traded off against the considerable legal and political obstacles of implementing any of these proposals. Yet key to the success of any common debt issuance is the effective dealing with the legacy debt of the Eurozone member states.

Suggested Citation

  • Amtenbrink Fabian & Repasi René & De Haan Jakob, 2016. "Is there Life in the Old Dog Yet? Observations on the Political Economy and Constitutional Viability of Common Debt Issuing in the Euro Area," Review of Law & Economics, De Gruyter, vol. 12(3), pages 605-633, November.
    • Handle: RePEc:bpj:rlecon:v:12:y:2016:i:3:p:605-633:n:7
    DOI: 10.1515/rle-2016-0045
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    References listed on IDEAS

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    More about this item

    Keywords

    Eurobonds; Euro crisis; sovereign debt; TFEU; constitutional law;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • 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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