The amendment of the European Stability Mechanism
Keywords:
European Union, Economic and Monetary Union, European Stability Mechanism, European Monetary Fund, Banking Union, Single Resolution FundAbstract
The depth of the economic crisis that began in 208 led to financial stabilization instruments in the European Union (EU). After a period of transience and provisionally, the European Stabilization Mechanism (ESM) allowed the Economic and Monetary Union (EMU) countries to consolidate a permanent financial assistance fund. In 2017, the Commission proposed revising the ESM to revoke its international organizational character and transform it into an EU agency included in the EU's institutional structure. The strong opposition of some Member States (MS) has avoided this possibility. The ESM Treaty has been revised and signed by the Eurozone states and maintains its intergovernmental nature. In any case, some new functions have been added, including its establishment as the Single Resolution Fund (SRF) backstop facility only in case of extreme need and when its liquidity is insufficient. Creating this support to the SRF is essential for consolidating the Banking Union.
Author Biography
Andreu Olesti Rayo, Professor of Public International Law at the University of Barcelona.
Professor of Public International Law at the University of Barcelona. His main field of specialization is in European Union Law. Bachelor and PhD in Law (1991). Bachelor in Economics (1986) and Law (1985). He is currently the Director of the Department of Criminal Law and Criminal Science and Public International Law and International Relations at the University of Barcelona. Director of PROJECT: EUROFUTURUM – PGC1028-094489-B100 and the Consolidated Group: DIDUE- 2017 SGR1371 Mail: olesti@ub.edu
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