leave = brexit consequences ( Archived) (786)

the EU constitution promised to underwrite borrowings of its members, they appear to have ignored undertakings the Greeks and the Cypriots should have been protected by.

Then as you talking to yourself you might firstly consider the extent of debit held by EU members and read on...

European financial stability measures and EU law
Article 123(1) TFEU which generally prohibits either the ECB or the national banks of Member States from providing credit facilities to or purchasing debt instruments from Member States10;

Although Article 123(1) prohibits credit facilities, including loans like those provided to Greece, its provisions only apply to the ECB and Member State national banks. At this stage, available information indicates that the loans are provided by Member States rather than national banks. Therefore, the loans do not appear to be prohibited by Article 123(1). It has also been suggested that the loans could be contrary to Article 125(1) TFEU (often referred to as “the no bailout clause”). The Member States are only providing loans and not grants or guarantees. Furthermore, there is no evidence that the Member States are otherwise assuming or becoming directly liable for Greece’s debt obligations. Therefore, it is doubtful that Article 125(1) would prohibit the Member State loans to Greece.



OCTOBER 10, 2012
GERMAN CONSTITUTIONAL COURT ON THE RATIFICATION OF THE ESM TREATY AND OF THE FISCAL COMPACT
On the 12th September 2012, the German Constitutional Court issued its much-expected third judgment on the constitutionality of measures that have been taken at the level of European and international law in response to the ongoing sovereign debt crises in the Eurozone and the crisis of the currency union that resulted thereof.




Related ECB opinions



The EU Financial Crisis –
European Law and
Constitutional
Law Implications