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Flashcards in EU Law - Economic Crisis Deck (152):
1

Pringle v Ireland

Challenged ESM

2

Fourth stage in european semester

Country-specific recommendations

3

What is the central body of the ESM?

Board of Governors

4

Second stage in european semester

European Council decide EU guidelines for national policies

5

How are EU institutions central to ESM?

Com and ECB assess requests and terms for support, and ECB/NFMs decide terms of assistance through Memoranda of Understanding

6

Three cases challenging legality of the bailouts

Adedy v Council, Sindicato dos Bancarios and Gauweiler

7

What was the bailout to Ireland and Portugal provided on the basis of?

EFSM (ESM) using EU budget as collateral

8

What was the higher lending capacity of the ESM?

500 billion

9

What mechanism did the EMS create?

Exchange Rate Mechanism

10

ADEDY v Council case

Collective organisations said they had direct and individual concern, representing their members

11

What was the idea of the EMU built on?

EMU would complement internal market, as it generates the need for economic integration for the sake of economic rationality

12

What is the European semester?

A six-month cycle to coordinate and streamline economic/budgetary policies

13

What kind of geometry has been used in negotiating UK-EU Agreement, leading to 'special status' of UK?

Flexible and variable geometry of EU

14

What does Article 127(2) TFEU allow?

Non-EU countries can participate to some degree, although euro area NCBs play a stronger role

15

How are the members of the Executive Board appointed?

By European Council via QMV, on recommendation from CoM, after consulting EUP and Governing Council of ECB

16

What is the single currency part of as a larger political idea?

'Ever closer union' (Treaty of Maastricht)

17

Why was Article 126 TFEU vital?

Giving up right to print money in single currency means Members cannot control interest rates

18

What is the ECB committed to?

Controlling inflation

19

What body permits the participation of the Executive Board, without a vote?

General Council

20

What body in ECB is the 'third decision-making body'?

General Council

21

What AG in Gauweiler suggested OMT compatible with Article 123?

AG Cruz Villalon

22

Why was it argued bailouts against democracy?

Taxpayer exposed to limitless liability against debts

23

Who suggested UK GDP could be 5.5% smaller by 2020 worst case and 2% by 2020 in more optimistic scenario if Brexit?

CBI

24

Decision 2011/199

Modified Article 136 TFEU to give Council some power in ESM

25

Who suggested some of the reforms given as 'suggestions' in the Memorandums of Understanding may be in breach of EU law/EU fundamental rights?

Kilipatrick

26

What is the prudential supervision task of ECB?

Supervise Member banking to make decisions in minimum reserve, risk, liquidity requirements and fines for non-compliance

27

ADEDY v council judgment

Rejected sufficient concern, and measures potentially in breach actually national rather than demanded by EU

28

How is there some political participation in ECB?

President of Council and Com can participate but no vote

29

National programmes under fiscal compact are authorised and monitored by who?

Com and Council

30

How did the CJEU answer in Pringle?

Economic policy so TFEU not breached, and not writing off debt as it is NEW debt

31

OMT policy survived German Constitutional Court challenge

OMT Decision

32

What suggests ECB limited to myopic vision of economy?

Fails to focus on economic growth, just price stability and controlling inflation

33

What committees can scrutinise supervisory activities of ECB?

EC committees

34

What two countries want to join Euro despite economic crisis?

Lithuania and Romania

35

What body is primarily an advisory and reporting body?

General Council

36

Two Regulations to identify 'at risk' Members for macroeconomic imbalances?

Regulation 1176/2011 and Reg 1174/2011

37

Who recommends members of Executive Board?

CoM

38

What Council adopted the Report on the EMU in the EC?

Madrid European Council

39

What is the European Currency Unit anchored in, de facto?

The German Mark

40

What could sovereign states always do under fiscal compact?

Pull out because international, but then probably failing to comply with other EU commitments that de facto refer to the Compact

41

Article 136 TFEU

Modified to give, among other things, power for Council to authorise ESM Treaty

42

When in particular did the ECB as a lender of last resort benefit private institutions and Gs?

2008 and 2012

43

What two countries negotiated Lisbon Treaty Protocols to opt out of the single currency?

UK and Denmark

44

Three prescriptions in Report on the EMU in the EC?

Complete liberalisation of capital movements, gradual introduction of single currency, exercise over national budget and coordinating national economic policies

45

What Treaty was originally set up to get around Article 123 and 125 TFEU?

European Financial Stability Facility

46

Membership of the General Council?

President and VP of Executive Board + governors of NCBs

47

What two countries struggled to keep in line with the EMS?

UK and Italy

48

What is the supreme decision-making body in ECB?

Governing Council

49

What was the first step towards an EMU?

European Monetary System

50

What is the Stability Pact now called?

Stability and Growth Pact

51

How did ECB respond to sovereign debt crisis?

If Members complied with new macroeconomic surveillance system, they would buy their debt

52

Sindicato dos Bancarios do Norte judgment

Use of prelim ruling procedure was fruitless as CJEU denied jurisdiction

53

To join the Euro, what does the Member need to satisfy?

Convergence criteria over period of 2 years

54

What did the OMT policy entail?

Gave ECB unlimited purchasing power of bonds, conditional on Gs complying with ESM programmes, including 'Memoranda of Understanding'

55

In what Article was the coordination of national economic policies achieved?

Articles 120 - 121, and 128 TFEU

56

Three key tasks of ECB

Conduct EU monetary policy, prudential supervision and lender of last resort

57

What country joined Euro during economic crisis?

Estonia

58

What does the Stability Pact include?

Commitment to public deficit less than 3% GDP and public debt less than 60%

59

What two Members opted out of the fiscal compact?

UK and Czech Republic

60

How does european semester start?

Com annual growth survey for EU priorities

61

Why are bailouts always outside EU in international treaties?

Article 125 TFEU ban

62

What Article did Decision 2011/199 modify?

Article 136 TFEU

63

In what Article was the exercise of control over national budget deficits achieved?

Articles 126 TFEU

64

OMT decision

Policy survived German Constitutional Court challenge

65

What did the Single European Act do?

Removed Member vetos in a number of areas

66

Name for ECB + NCB

European System of CBs

67

What Article makes it clear ECB role is not to give loans to EU institutions/national Gs?

Article 123 TFEU

68

What did the European Financial Stability Facility become?

European Stability Mechanism in 2012

69

What Article provides for the European semester?

Article 121 TFEU

70

Who suggested terms of some loan agreements agreed 'under duress'?

Kilipatrick (e.g. in reference to Portugal)

71

How many chapters are there in Articles 119 - 144 TFEU?

Five

72

How many members form the Governing Council?

6 of Executive Board + governors of national CBs of euro countries

73

What can a failure to comply with the 'six pack' lead to?

Fines of up to 0.1% GDP

74

Gauweiler and Others judgment at German Constitutional Court

2 judges refused, 4 hinted to CJEU in reference that ECB exceeded mandate

75

Regulation 1176/2011 and Reg 1174/2011

Regulations to identify 'at risk' Members for macroeconomic imbalances

76

Three things in Brexit on sovereignty

Not committed to 'ever closer union', only for UK as 'special status' and reiteration of Protocol 2 Article 6 - 7 on subsidiarity and proportionality

77

How can ADEDY and Sindicato be explained?

Poorly formulated references and failure to prove 'agents' of EU

78

When does Romania consider joining by?

2019

79

Article 126 TFEU

Members should avoid excessive G deficits, with monitoring of targets in Stability Pact

80

When was the European Monetary System?

1979

81

What are loan agreements conditional on under Financial Assistance Prorgammes?

Approval of Memoranda of Understanding (from ESM)

82

Why does Article 127(2) TFEU exist?

Some decisions of ECB can affect non-EU countries' economic and monetary policies

83

What Article makes monetary policy area of exclusive competence?

Article 282 TFEU

84

How did Sweden opt out of the single currency?

National referendum, so formal declaration under Article 120 TFEU

85

What Decision tried to give Council some power in ESM?

Decision 2011/199

86

What is an Exchange Rate Mechanism?

Commits Members to controling currency fluctuation around +/-2.5% of notional composite unit of account

87

Where are the powers for the involvement of the EU institutions in the ESM?

Not in TEU or TFEU

88

What body in ECB sets interest rates, objectives and decisions on liquidity?

Governing Council

89

How was the OMT policy carried out in practice?

Instead of purchasing directly from G, bought bonds from mostly private credit institutions, then sole on securities market

90

What two non-EU countries use the Euro?

Montenegro and Kosovo

91

How do non-participating Members still contribute to Euro?

Pay a small amount to ECB indirectly as NCBs 'own' shares

92

What is the 'Fiscal compact'

Treaty concluded between Members to balance national budgets and avoid G deficits exceeding 0.5% GDP, with effect in Members state (preferably constitutional)

93

What do European Council do under Regulation 1176/2011 and Reg 1174/2011?

Make recommendations on the basis of Com proposals for 'correct action plan' in six pack

94

What did the OMT policy mean?

ECB acting as de facto lender of last resort for Euro-area Gs

95

What is the notional composite unit of account in Exchange Rate Mechanism known as?

European Currency Unit

96

What was the pain-in capital in ESM?

80 billion euros

97

What is the Board of Governors comprised of?

Euro-area Members' Finance Ministers

98

What suggests political decisions in EU, at least in regard to market, taken by technocrats?

Limited political participation

99

In what Article was the single currency achieved?

Article 128 TFEU

100

Gauweiler and Others case

ECB interfering in policy, financing public debts and against democracy

101

How many Members are part of the Euro?

19

102

Three examples of Financial Assistance Programmes concluded for Members worst affected (bailouts)

Greece, Ireland and Portugal

103

What measure of macroeconomic surveillance is an example of 'mutual trust' principle?

Fiscal compact

104

How much of ECB capital approx. do BoE subscribe to?

14%

105

When does Lithuania consider joining by?

2015

106

How is the fiscal compact an example of mutual trust principle?

Trust economic policy in other Members is in line with EU objectives

107

What is the main area of economic governance in the EU?

Functioning of the Economic and Monetary Union

108

What case suggested OMT compatible with Article 123 TFEU?

Gauweiler and Others

109

What Article shows ECB is independent?

Article 130 TFEU

110

Gauweiler and Others judgment at CJEU

Although might affect economic policy, not economic policy - transmitting signals about appropriate interest rate, so purchase of bonds is only due to interference with transmission by high interest of Member

111

What shows that creation of the Euro is both an economic and political project?

Countries still wish to join even whilst Euro suffering economic crisis (e.g. Estonia, Lithuania and Romanis)

112

What did the Report on the EMU in the EC prescribe?

Further economic and monetary integration

113

What Treaty enshrined the 'Stability Pact'?

Treaty of Maastricht

114

How was there a rescue of EU from 'Eurosclerosis'?

Delores Single European Act

115

What Article prohibits public bailouts?

Article 125 TFEU

116

Three examples of non-Eurozone bailouts?

Hungary, Latvia and Romania

117

Why was there optimism in the 1990s?

Rescue of EU from 'Eurosclerosis'

118

Who do the CoM consult in deciding recommendations for Executive Board?

EUP and Governing Council

119

Example showing flexible and variable geometry in Report on EMU in the EC?

UK and Denmark Lisbon Treaty Protocols; Sweden formal declaration

120

Articles 120 - 121, and 128 TFEU

Coordination of national economic policies

121

Two examples of non-EU/participating Members affected by Euro

Non-participating 'own' shares in ECB, and Montenegro and Kosovo use the Euro

122

What Article governs Governing Council?

Article 283 TFEU

123

What was the idea behind ESM?

Financial assistance through money market instruments and debt w/ medium/long term maturities

124

What is the membership of the Executive Board?

President, VP + 4 members

125

Who highlighted how the solution to the Eurozone crisis is simple, but hard to implement because sensitive?

Jean-Claude Juncker

126

Two things in Brexit on social benefits

Can deny charitable benefits to workers and benefits with a dual function if worker just here for work and can restrict in-work benefits to newly-arriving EU for up to 4 years, with 7 year limitation period

127

What Articles in TFEU cover functioning of the EMU?

Articles 119 - 144 TFEU

128

Fifth stage in European semester

ECOFIN Council decide upon country-specific recommendations for Members

129

Article 121 TFEU

Members coordinate economic policies, surveillance

130

What is the independence of the ECB based in part on?

Independence of German federal bank

131

Who highlighted Welsh benefits from EU?

Welsh First Minister

132

What is surprising about sanctions under the Fiscal Compact and why?

CJEU can impose financial sanctions despite international treaty

133

What were the 'bail outs' to Latvia, Hungary and Romania introduced on the basis of?

Article 143 TFEU

134

Power for Council to authorise ESM Treaty

Article 136 TFEU

135

Who is the single currency exclusively issued by?

ECB

136

What are the three main bodies in the ECB?

Governing Council, Executive Board and General Council

137

In what Article was the complete liberalisation of capital movements achieved?

Article 63 TFEU

138

Third stage in european semester

Members submit budgets and reform plans

139

How many stages are in the european semester?

5

140

What case challenged ESM validity?

Pringle v Ireland

141

What was argued in Pringle v Ireland?

Monetary policy, so exclusively competence of ECB, and breaching TFEU

142

Why was it argued that suggestions in Memoranda of Understanding could not be challenged under EU law?

From ESM, which is an international treaty

143

What Article governs General Council of ECB?

Article 44 TFEU

144

What enshrined the Stability Pact?

Protocol 12 TFEU

145

What body in ECB is responsible for day-to-day running?

Executive Board

146

Problem in Gauweiler with Pringle judgment

Unlike Pringle, ECB said this policy WAS monetary

147

Gauweiler and Others on OMT policy

AG Cruz Villalon Op suggested OMT compatible with Article 123 TFEU

148

What two countries have constitutionally enacted the fiscal compact?

Spain and Slovenia

149

What was adopted in 2012?

Outright Monetary Transactions policy

150

What does the 'six pack' refer to?

Six acts reforming Pact for Stability and Growth

151

How were the suggestions in the Report on the EMU in the EC brought to life?

Through treaty reforms from Maastricht to Lisbon

152

Three elements to the new macroeconomic surveillance system

European semester, six pack and fiscal compact

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