Eurozone rescue mechanisms: A new international financial law complementary to the EU law

Abstract

The issue of economic and monetary governance in the EU returned to the global international agenda with the sovereign debt crisis. From a regional perspective, the development of a single market for capital and financial services is still a central goal of the European integration process. However, the EU and its Member States faced divergence. The existing legal framework proved inadequate to address the short-term and long-term challenges pointed out by the crisis, i.e. fiscal discipline, job creation, tax harmonisation, access to credit and a Europe- wide permanent rescue fund. In fact, fragmented crisis resolution arrangements were reached between different groups of Member States. Once again, there are diverse speeds in the setting-up of a new European legal framework. The 2012 ECJ Judgment relating to the ESM Treaty can be interpreted in conjunction with all the rescue mechanism and, therefore, the ECJ ruled that they were compatible with EU law.