Law and Rights
- Is A Temporary Grexit Legally Possible? Emu As The Hotel California
Steve Peers According to press reports, while today?s Eurogroup meeting, called to consider a possible new bail-out plan for Greece, was taking place, the German government was leaking a plan for a ?temporary Grexit?. Before considering the political...
- The Law Of Grexit: What Does Eu Law Say About Leaving Economic And Monetary Union?
Steve Peers A Greek referendum on whether to accept its creditors? offer is currently scheduled for next week. It?s not clear at this point whether the Greek voters? refusal to accept the offer would necessarily lead to Greece leaving the EU...
- The Financial Services Industry And The European Central Bank: The Uk Has Won A Battle, But Can It Win The War?
Steve Peers Until yesterday, two trends seemed consistent in the jurisprudence of the EU courts. First of all, the UK kept losing cases relating to the interests of its financial services industry: on short-selling (discussed here), the financial...
- Catharsis Or Catastrophe: What Next For Greece And The Eurozone?
Steve Peers Yesterday the anti-austerity party Syriza won a large victory in Greek elections and seems certain to become the government, probably in coalition with a smaller party. What is the likely impact upon the EU?s economic and monetary...
- The Beginning Of The End For The Euro? Eu Law Constraints On Leaving Emu Or Defaulting On Debts
Steve Peers After a couple of years without any (apparent) crisis, the future of Economic and Monetary Union (EMU) is threatened again, following the decision to call snap Greek elections in January. What would be the consequences if the anti-austerity...
Law and Rights
The legal challenge to ECB restrictions on Greek bank accounts ? and how you can help
Steve Peers
Many EU citizens have watched with sympathy and concern as Greek citizens have been limited to withdrawing ?60 a day in the last two weeks. This restriction results from a restriction imposed by the European Central Bank (ECB) on the emergency liquidity assistance which it provides to Greek banks.
Apart from the human impact, there are grave legal, political and economic doubts about the ECB?s action. One of the central purposes of a central bank is to function as a lender of last resort to banks ? and the ECB is signally failing to do that here. Also, the ECB?s actions give the impression that it is trying to influence the Greek political debate on austerity and membership of the Eurozone ? a role which is well outside the Bank?s remit. The banking restrictions obviously damage the Greek economy, and so limit its ability to pay back its creditors in future. They have nothing to do with the Bank?s task of fighting inflation, and they undermine its broader role in supporting the EU?s economic growth. (For a fuller critique, see here (paywalled); on the legal background, see here). Arguably these restrictions ? or further restrictions which the ECB might impose ? could lead toward a de facto ?Grexit? from monetary union, which is ruled out by EU law (see my discussion here).
It?s possible to challenge the ECB?s actions via the national courts, which can refer the issue to the CJEU, such as in the recent Gauweiler case (discussed here). They can also be challenged in the EU courts, such as in the UK?s recent successful challenge (discussed here). The case law takes a broad view of what ECB acts can be challenged, except where it acts as part of the ?Troika? which negotiates bailout conditions, when neither the Bank nor the Commission can be challenged in the EU courts. But the ECB?s restriction of assistance to Greek banks did not fall within the scope of its role in the Troika.
National governments such as Greece can go directly to the EU courts to challenge ECB actions. Other challengers besides the EU institutions would have satisfy standing rules: ?direct and individual concern?, or (if they are challenging a non-legislative act which does not entail implementing measures) ?direct concern?. Arguably it would be easy for a Greek bank to satisfy those rules.
In the absence of a legal challenge from a Greek bank or the Greek government, an individual depositor has brought a legal challenge to the ECB?s recent actions before the EU General Court. You can find the full text of the claim here. The ECB might restore assistance if there is a deal in the near future, but it is still worth challenging its actions, so it cannot do this (or threaten to do it) in future.
Obviously there is a possible problem with standing, although a parallel challenge could be brought in the Greek courts. The plaintiff welcomes any advice or support ? contact [email protected]. Or you can leave comments on this blog post.
Obviously there is a possible problem with standing, although a parallel challenge could be brought in the Greek courts. The plaintiff welcomes any advice or support ? contact [email protected]. Or you can leave comments on this blog post.
Barnard & Peers: chapter 19
Photo credit: www.2oceansvibe.com
- Is A Temporary Grexit Legally Possible? Emu As The Hotel California
Steve Peers According to press reports, while today?s Eurogroup meeting, called to consider a possible new bail-out plan for Greece, was taking place, the German government was leaking a plan for a ?temporary Grexit?. Before considering the political...
- The Law Of Grexit: What Does Eu Law Say About Leaving Economic And Monetary Union?
Steve Peers A Greek referendum on whether to accept its creditors? offer is currently scheduled for next week. It?s not clear at this point whether the Greek voters? refusal to accept the offer would necessarily lead to Greece leaving the EU...
- The Financial Services Industry And The European Central Bank: The Uk Has Won A Battle, But Can It Win The War?
Steve Peers Until yesterday, two trends seemed consistent in the jurisprudence of the EU courts. First of all, the UK kept losing cases relating to the interests of its financial services industry: on short-selling (discussed here), the financial...
- Catharsis Or Catastrophe: What Next For Greece And The Eurozone?
Steve Peers Yesterday the anti-austerity party Syriza won a large victory in Greek elections and seems certain to become the government, probably in coalition with a smaller party. What is the likely impact upon the EU?s economic and monetary...
- The Beginning Of The End For The Euro? Eu Law Constraints On Leaving Emu Or Defaulting On Debts
Steve Peers After a couple of years without any (apparent) crisis, the future of Economic and Monetary Union (EMU) is threatened again, following the decision to call snap Greek elections in January. What would be the consequences if the anti-austerity...