International law as a negotiation tool in Banking Union; the case of the Single Resolution Fund

Abstract

EU’s response to the recent Euro-crisis has involved a mixture of EU and international law, with the latter being linked to all the arrangements that may have fiscal implications for national Member States. The SRF embodies all the controversial characteristics of Banking Union. This article illustrates the legal implications that this political choice creates, and how the interrelation between the SRM, the SRF and the ESM, allows leading economies, including Germany, to control the resolution framework both before and after crisis. This raises questions as to the direction that European Integration is taking and its highly nationalised character.

Keywords:

• Single Resolution Fund
• international law
• negotiation tool
• fundamental changes clause
• Nationalised European Integration

Notes

1. International law and intergovernmentalism are notions that are being used interchangeably in this article.

2. For example, Supreme Court of Estonia, Judgment of 12 July 2012, case 3-4-1-6-12; Constitutional Council of France, decision No. 2012-653DC, judgment of 9 August 2012.