The european mechanism for financial stability and the euro-plus pact

Author:Augustin Fuerea
Position:Professor, Ph.D., Faculty of Law, 'Nicolae Titulescu' University, Bucharest, Romania
Pages:32-40
SUMMARY

The economic crisis that has affected countries from all continents has generated, among others, also a strong financial crisis, which in turn, has caused serious imbalances in the economic and financial environment of EU Member States. Under these circumstances, the Council, being in an exceptional situation, “outside the control of Member States”, as it itself states in the Preamble to... (see full summary)

 
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32 Lex ET Scientia. Juridical Series
LESIJ NO. XIX, VOL. 1/2012
THE EUROPEAN MECHANISM FOR FINANCIAL STABILITY
AND THE EURO-PLUS PACT
Augustin FUEREA1
Abstract
The economic crisis that has affected countries from all continents has generated, among
others, also a strong financial crisis, which in turn, has caused serious imbalances in the economic
and financial environment of EU Member States. Under these circumstances, the Council,
being in an exceptional situation, “outside the control of Member States”, as it itself states in the
Preamble to Regulation No. 407/2010, considered necessary, “the immediate establishment of a
stabilization mechanism at EU level in order to maintain the financial stability in the European
Union”, mechanism that “would enable the Union to respond in a coordinated, rapid and effective
way to the serious difficulties undergone by a certain Member State”.
Keywords.The European Financial Stabilization Mechanism; the Euro-Plus Pact; European
Union; The Council Conclusions; EU Member States.
Introduction
Without claiming to develop a specialized analysis on the financial crisis that not just Europe
has crossed through the last three years and still crosses, it is impossible not to observe the concerted
efforts of Member States of the European Union in order to overcome it, or, at least, to maintain it at
the same level. Thus, further on, we propose an overview of what is happening now in the EU, while
trying an economic recovery in Europe. This presentation is however limited only to the legal
aspects, leaving time to decide whether all these efforts have been successful or not. In this sense, we
bring in the forefront two measures at EU level, namely the European Financial Stabilization
Mechanism and the Euro-Plus Pact.
2. The European Financial Stabilization Mechanism (EFSM)
The economic crisis that has affected countries from all continents has generated, among
others, also a strong financial crisis, which in turn, has caused serious imbalances in the economic
and financial environment of EU Member States.
Aware of the fact that it witnesses a financial crisis and an economic downturn “without
precedent which has brought serious damage to the economic growth and financial stability, leading
to a strong deterioration in the deficit and debt situation of Member States”2, the European Union
legislature has been put in the situation of facing new challenges. One of these challenges is the fact
that the financial crisis has also deteriorated the loan conditions in Member States, situation which,
unregulated in time would result in the emergence of a new threat “against the stability, unity and
integrity of the Eurozone, as a whole”3.
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1 Professor, Ph.D., Faculty of Law, “Nicolae Titulescu” University, Bucharest, Romania
(email:augustinfuerea@yahoo.com).
2 Paragraph (3) of the Preamble to Regulation No. 407/2010 of the Council of May 11, 2010 establishing a
European mechanism of financial stabilization.
3 Paragraph (4) of the Preamble to Regulation No. 407/2010.

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