Law of the Economic and Monetary Union

Leerdoelen

At the end of this course, the student must be able to assess legal correctness of media reports on EMU and to put view forward on the law relating to economic and monetary union. Furthermore, the student must be able to argue in the context of single currency-related questions and monetary unions elsewhere.

Inhoud

• Who determines interest rates in Europe?
• What is the legal set-up of economic governance in Europe?
• What budgetary rules are EU States subject to? And do they differ for States that have adopted the euro?
• Can my bank apply different costs for transactions domestically and with another Member State? And will this change upon the introduction of the arrangements called SEPA?
• Can I freely invest my euros everywhere in the EU?
• What tests do newly acceded States have to pass before adopting the euro?
• What, really, is the Stability and Growth Pact?
• How is Europe's central bank organized? What rules must the ECB follow?
• How come central banks in the USA, the UK and the eurozone sometimes take a different stance in the credit crucnh following the sub-prime crisis?
• Would adoption of the Lisbon Treaty change the rules on the euro or on budget deficits?
• How do the EU and the IMF cooperate in the sovereign debt crisis?

These are just some of the issues that will be studied during this year's course on Economic and Monetary Union. With the financial crisis calling into question the institutional setup of the Economic and Monetary Union (EMU), this course is as topical as ever. All legal issues surrounding the euro will be discussed in this single-focused course.
The EMU law course gives the student an introduction to the European Community Treaty provisions on EMU and to major elements of secondary legislation on EMU.
An important object of study is formed by the rules relating to the single currency and those relating to the European Central Bank (ECB) and the European System of Central Banks (ESCB). In addition to the law on monetary union, EMU law encompasses the provisions for the adoption of the single currency (convergence criteria), an issue of continued importance with the eurozone convening only 17 out of 27 EU Member States. Students will also study the provisions on economic union (policy co-ordination, the excessive deficit procedure and the Stability and Growth Pact, amended in 2005). The economic policy debate has brought the limits of national policy-making sharply into focus. The much-heralded "demise" of the Stability and Growth Pact and the case decided by the European Court of Justice (ECJ) on the Pact's rules warrant a study of the budgetary constraints for Member States under EMU rules. Among the other topics of EMU law, the internal market rules will be the starting point: the freedom to make payments and the free movement of capital are the focus of study, including the «golden share» rulings of the ECJ. Finally, EMU law includes the external aspects of EMU (the Exchange Rate Mechanism between the euro and the «out» currencies and relations with third countries and the International Monetary Fund).

The impact on EMU rules of the Treaty of Nice, the Treaty of Accession, the EU Constitution and the Treaty of Lisbon will be included in this course. After completion, the students will be familiar with the main legal elements of this recent chapter of Community law. The students will be empowered to discuss the legal underpinnings of the economic-policy debate and to see the legal issues of enlargement in a euro-context.

For successful participation in the EMU law course, basic knowlegde of the organisation and functioning of the EU is required. The material provided in class should enable students to acquiant themselves with EMU law and matters:

1. a General Reader with articles and book excerpts, as well as case law to study,
2. a Legal Instruments Reader which supplement
3. a booklet containing legal acts concerning EMU, plus
4. a free elaborate hand-out with case law summaries, overviews of intricate coordination measures and of the core regulations on the euro 

Onderwijstijden

Day-time.

Studiemateriaal

• General Reader. This reader contains selected legal writing and case law for preparatory reading in advance of each lecture. Also, recommended reading for further study is indicated for each of the lectures;
• Legal Instruments Reader. This reader contains legal instruments not included in the Compilation (see above), which have been adopted since 2007, or are otherwise relevant for the study of EMU law.
• Compilation of Community legislation on the economic and monetary union, This is a publication of July 2007 by the European Commission's Directorate-General for Economic and Monetary Affairs (ISBN 92-894-9048-9). It is available on-line at: http://europa.eu.int/euro/dossiers/00278/html/index-EN.html

Average required reading per lecture: 1 pages. At the end of each lecture, Professor Smits will devote a few minutes to guide the students through the reading material for the next lecture.

Toetsvorm

Exam.

Bijzonderheden

Students are supposed to participate actively through pre-lecture reading, involvement in the lectures by way of questions and presentations before class. The so-called case method is followed according to which each student is to prepare the required reading material, indicated in the reader, and are all invited by name to contribute actively during class. Experience shows that active participation favourably influences the success rate at the examination. Students who successfully complete the course by passing the examination earn 5 European credits.

For further possible course requirements, see the Blackboard site at http://blackboard.uva.nl.