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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

    (Erasmus Universiteit Rotterdam, Netherlands)

  • 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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    1. Paul De Grauwe & Yuemei Ji, 2012. "Mispricing of Sovereign Risk and Macroeconomic Stability in the Eurozone," Journal of Common Market Studies, Wiley Blackwell, vol. 50(6), pages 866-880, November.
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    6. Jakob De Haan & Helge Berger & David‐Jan Jansen, 2004. "Why has the Stability and Growth Pact Failed?," International Finance, Wiley Blackwell, vol. 7(2), pages 235-260, July.
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    9. Jakob de Haan & Niels D. Gilbert & Jeroen Hessel & Silvie Verkaart, 2013. "How to Enforce Fiscal Discipline in EMU: A Proposal," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 149(II), pages 205-217, June.
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    More about this item

    Keywords

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    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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