Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Law & Economics

Editor-in-Chief: Parisi, Francesco / Engel, Christoph

Ed. by Cooter, Robert D. / Gómez Pomar, Fernando / Kornhauser, Lewis A. / Parchomovsky, Gideon / Franzoni, Luigi Alberto

CiteScore 2018: 0.32

SCImago Journal Rank (SJR) 2018: 0.274
Source Normalized Impact per Paper (SNIP) 2018: 0.493

See all formats and pricing
More options …
Volume 12, Issue 3


Is there Life in the Old Dog Yet? Observations on the Political Economy and Constitutional Viability of Common Debt Issuing in the Euro Area

Fabian Amtenbrink / René Repasi / Jakob De Haan
Published Online: 2016-10-25 | DOI: https://doi.org/10.1515/rle-2016-0045


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.

Keywords: Eurobonds; Euro crisis; sovereign debt; TFEU; constitutional law

JEL Classification: G01; G15; H63; K33; F34


  • Amtenbrink, F. 2012. “The European Court of Justice’s Approach to Primacy and European Constitutionalism: Preserving the European Constitutional Order?,” in H.-W. Micklitz and B. De Witte, eds. The European Court of Justice and the Autonomy of the Member States. Cambridge: Intersentia, 35–63.Google Scholar

  • Amtenbrink, F. 2014. “New Economic Governance in the European Union: Another Constitutional Battleground?,” in P. Purnhagen and P. Roth, eds. Varieties of European Economic Law and Regulation. Heidelberg: Springer, 207–234.Google Scholar

  • Amtenbrink, F., and J. de Haan. 2006. “Reforming the Stability and Growth Pact,” 31(3) European Law Review 402–413.Google Scholar

  • Amtenbrink, F., J. de Haan, and O. Sleijpen. 1997. “Stability and Growth Pact: Placebo or Panacea?,” 8(9/10) European Business Law Review 202–210, 233–238.Google Scholar

  • Athanassious, P. 2011. “Of Past Measures and Future Plans for Europe’s Exit From the Sovereign Debt Crisis: What Is Legally Possible (and What Is Not),” 36 European Law Review 558–575.Google Scholar

  • Boonstra, W.W. 2010. “The Creation of a Common European Bond Market,” in Cahier Comte Boël, No. 14, ELEC, April 2010.

  • Brunnermeier, M., L. Garicano, P. Lane, S. Nieuwerburgh, M. Pagano, R. Reis, T. Santos, and D. Vayanos. 2011. “European Safe Bonds: An Executive Summary,” www.princeton.edu/~markus/misc/Europe/ESBies%20exec%20summary.pdf

  • Buiter, W., and E. Rahbari. 2012. “The European Central Bank as Lender of Last Resort for Sovereigns in the Eurozone,” 50(2) Journal of Common Market Studies 6–35.Google Scholar

  • Buti, M., and N. Carnot. 2012. “The EMU Debt Crisis: Early Lessons and Reforms,” 50(6) Journal of Common Market Studies 899–911.Google Scholar

  • De Grauwe, P., and W. Moesen. 2009. “Gains for All: A Proposal for a Common Euro Bond,” 44(3) Intereconomics 132–135.Google Scholar

  • De Grauwe, P. 2011. “The Governance of a Fragile Eurozone,” CEPS Working Document No. 346.

  • De Grauwe, P., and Y. Ji. 2012. “Mispricing of Sovereign Risk and Macroeconomic Stability in the Eurozone,” 50(2) Journal of Common Market Studies 866–880.

  • de Haan, J., H. Berger, and D. Jansen. 2004. “Why Has the Stability and Growth Pact Failed?,” 7(2) International Finance 235–260.CrossrefGoogle Scholar

  • de Haan, J., N.D. Gilbert, J.P.C. Hessel, and S.A.M. Verkaart. 2012. “Beyond the Fiscal Compact: How Well-Designed Eurobonds May Discipline Governments,” 3 Zeitschrift Für Staats- Und Europawissenschaften 323–337.Google Scholar

  • de Haan, J., N.D. Gilbert, J.P.C. Hessel, and S.A.M. Verkaart. 2013. “How to Enforce Fiscal Discipline in EMU: A Proposal,” 149(2) Swiss Journal of Economics and Statistics 205–217.Google Scholar

  • de Haan, J., J. Hessel, and N. Gilbert. 2016. “Reforming the Architecture of EMU: Ensuring Stability in Europe,” in H. Badinger and V. Nitsch, eds. Handbook of the Economics of European Integration. New York: Routledge.Google Scholar

  • de Haan, J., J. Hessel, and J.W. Van den End. 2014. “Are European Sovereign Bond Yields Fairly Priced? The Role of Modelling Uncertainty,” 47 Journal of International Money and Finance 239–267.Google Scholar

  • De la Dehesa, G. 2011. “Eurobonds: Concepts and Implications,” European Parliament notes for the Monetary Dialoge of March 2011. www.europarl.europa.eu/RegData/etudes/note/join/2011/457357/IPOL-ECON_NT%282011%29457357_EN.pdf

  • Delpla, J., and J. von Weizsäcker. 2010. “The Blue Bond Proposal,” Bruegel Policy Brief 2010/03.

  • Doluca, H., M. Hübner, D. Rumpf, and B. Weigert. 2012. “The European Redemption Pact: An Illustrative Guide,” German Council of Economic Experts Working Paper 02/2012.

  • European Commission. 2011. “Green Paper on the Feasibility of Introducing Stability Bonds,” COM (2011) 818 final.

  • European Commission. 2012. “A Blueprint for a Deep and Genuine Economic and Monetary Union,” COM(2012) 777 final/2.

  • European Parliament. 2011. “Resolution on the Feasibility of Introducing Stability Bonds,” 2011/2959(RSP).

  • Expert Group on Debt Redemption Fund and Eurobills. 2014. “Final Report,” 31 March 2014.

  • Favero, S., and A. Missale. 2012. “Sovereign Spreads in the Eurozone: Which Prospects for a Eurobond?,” 70 Economic Policy 231–268.CrossrefWeb of ScienceGoogle Scholar

  • Geiss, M. 2012. “AEUV Artikel 352,” in J. Schwarze, ed. EU-Kommentar. Baden-Baden: Nomos, 2585–2594.Google Scholar

  • Gros, D. 2011. “Eurobonds: Wrong Solution for Legal, Political, and Economic Reasons,” VOXEU, CEPR’s Policy Portal, 24 August 2011.

  • Gros, D. 2012. “On the Stability of Public Debt in a Monetary Union,” 50(2) Journal of Common Market Studies 36–48.Google Scholar

  • Hellwig, C., and T. Philippon. 2011. “Eurobills, not Eurobonds,” VOXEU, CEPR’s Policy Portal, December 2, 2011.

  • Heun, W., and A. Thiele. 2012. “Verfassungs- Und Europarechtliche Zulässigkeit Von Eurobonds,” 20(2012) Juristenzeitung 973–982.CrossrefGoogle Scholar

  • Jones, E. 2010. “A Eurobond Proposal to Promote Stability and Liquidity while Preventing Moral Hazard,” ISPI Policy Brief, No 180, March 2010.

  • Juncker, J.-C., and G. Tremonti. 2010. “Stability Bonds Would End the Crisis,” The Financial Times, 5 December 2010.

  • Juncker, J.-C., D. Tusk, J. Dijsselbloem, M. Draghi, and M. Schulz. 2015. “The Five President’s Report: Completing Europe’s Economic and Monetary Union,” 22 June 2015, Brussels.

  • Kämmerer, J.A. 2012. “Art. 123 AEUV,” in H. Siekmann, ed. EWU. Kommentar zur Europäischen Währungsunion. Tübingen: Mohr Siebeck, 150–166.Google Scholar

  • Mayordomo, S., J.I. Pena, and E.S. Schwartz. 2009. “Towards a Common European Monetary Union Risk Free Rate,” NBER Working Paper Series No. 15353, Cambridge, MA, September 2009.

  • Muellbauer J. 2011. “Resolving the Eurozone crisis: Time for Conditional Eurobonds.” CEPR Policy Insight 59.

  • Philippon, T. 2015. “The State of the Monetary Union,” VOXEU, CEPR’s Policy Portal, 31 August 2015

  • Potacs, M. 2012. “AEUV Artikel 136,” in J. Schwarze, ed. EU-Kommentar. Baden-Baden: Nomos, 1580–1581.Google Scholar

  • Sachverständigenrat (German Council of Economic Experts). 2011. “Assume Responsibility for Europe,” Annual Report 2011/12.

  • Smits, R. 2011. “Outline of the Legal Chapter on Eurobonds, Reply in the European Commission’s Consultation on ‘Stability Bonds’,” http://renesmits.eu/files/8513/3097/8289/Outline_of_the_legal_chapter_on_Eurobonds_041111.pdf

  • Suarez, J. 2011. “A Three-Pillar Solution to the Eurozone Crisis’,” VOXEU, CEPR’s Policy Portal, 15 August 2011.

  • Van Rompuy, H. 2012. “Towards a Genuine Economic and Monetary Union,” Brussels, 5 December 2012, www.consilium.europa.eu/uedocs/cms_Data/ docs/pressdata/en/ec/134069.pdf

About the article

Published Online: 2016-10-25

Published in Print: 2016-11-01

Citation Information: Review of Law & Economics, Volume 12, Issue 3, Pages 605–633, ISSN (Online) 1555-5879, ISSN (Print) 2194-6000, DOI: https://doi.org/10.1515/rle-2016-0045.

Export Citation

©2016 by De Gruyter.Get Permission

Comments (0)

Please log in or register to comment.
Log in