This Article seeks to determine if there is a legal basis for European Union (“EU”) Institutions to be held accountable for measures taken by an EU Member State in cases of financial distress. The Article begins by exploring the concept of sovereignty and then evaluates the limitations placed on state sovereignty by participation in the EU. Next, it explores the definitions of economic coercion and countermeasures and considers whether the actions taken by EU institutions in the context of the Cyprus banking haircut would satisfy either of these definitions. Lastly, this Article studies whether EU law can provide a basis for liability of EU institutions in case of acts adopted by such institutions to address a financial crisis in a manner that targets the rights of investors and, in particular, in the Cyprus Banking Haircut.
Acts of Financial Distress in the EU: Is the EU to Blame?,
27 Wash. Int’l L.J.
Available at: https://digitalcommons.law.uw.edu/wilj/vol27/iss2/6