Advertisement

© 2015

From Saviour to Guarantor

EU Member States’ Economic Intervention During the Financial Crisis

Book

Part of the Roma Tre Business and Finance Collection book series (RTBF)

Table of contents

  1. Front Matter
    Pages i-xvi
  2. The EU’s Institutional Action

    1. Front Matter
      Pages 1-1
    2. Fabio Bassan, Carlo D. Mottura
      Pages 3-12
    3. Fabio Bassan, Carlo D. Mottura
      Pages 13-15
  3. The Financial Valuation of a Guarantee Contract

    1. Front Matter
      Pages 17-17
    2. Fabio Bassan, Carlo D. Mottura
      Pages 19-21
    3. Fabio Bassan, Carlo D. Mottura
      Pages 22-45
  4. The State Guarantees in the EU: State Guarantees for the Safeguard of the Euro

    1. Front Matter
      Pages 47-47
    2. Fabio Bassan, Carlo D. Mottura
      Pages 49-56
    3. Fabio Bassan, Carlo D. Mottura
      Pages 57-66
  5. The State Guarantees in the EU: The State Guarantees for the Stability of the Banking System

    1. Front Matter
      Pages 67-67
    2. Fabio Bassan, Carlo D. Mottura
      Pages 69-73
    3. Fabio Bassan, Carlo D. Mottura
      Pages 74-82
  6. Innovation and Crisis-Fighting Measures in the EU

    1. Front Matter
      Pages 83-83
    2. Fabio Bassan, Carlo D. Mottura
      Pages 85-97
  7. Conclusions

    1. Fabio Bassan, Carlo D. Mottura
      Pages 121-125
  8. Back Matter
    Pages 126-159

About this book

Introduction

State guarantees commonly function as financial panacea, allowing states to consolidate banking systems and create intergovernmental funds. Rules surrounding state guarantees were relaxed during the 2007-2008 financial crisis, allowing states to use them for financing small and medium-sized enterprises (SMEs) and workers' severance payments. Despite many multi-level interventions in many areas after the financial crisis, from international treaties to EU regulations, no specific regulation has been put in place to control state guarantees. This book addresses the subject of state guarantees in the Eurozone, and questions the stability of the instruments implemented so far by states and by the European Union. Using a methodology combining law and finance, it examines the tools adopted by European institutions and Member States in the EU's evolving institutional context, in order to evaluate the effectiveness of the tools themselves as well as of the new European institutional framework. It also addresses the unconventional measures adopted by the European Central Bank, its role as safeguard for European state guarantees and its interaction with the European Union and national courts. In From Saviour to Guarantor the authors suggest that the absence of specific regulatory interventions and the variety and vagueness of existing rules has resulted in state guarantees further destabilising public international finance.

Keywords

Euro ESM banking system guarantee contract government guarantee default risk dependence structure banking competition Credit Derivatives finance methodology moral hazard public finance stability

Authors and affiliations

  1. 1.University of Roma TreItaly

About the authors

Fabio Bassan is Professor of International Economic Law and European Law at the Department of Business Studies, 'Roma Tre' University, Italy. He is Founding Director of the Sovereign Wealth Funds Law Centre, and his areas of interest include international law, European law, sovereign wealth funds, regulation of financial markets, corporate governance, corporate finance, law & economics, and the political economy of regulation.

Carlo Mottura is Professor of Financial Mathematics, Financial Valuation and Risk Management at the Department of Business Studies at 'Roma Tre' University, Italy. His research interests include the control of risks, financial valuation under uncertainty, financial restructuring, and enterprise evaluation. He has also lead research projects funded by the Consiglio Nazionale delle Ricerche (CNR).

Bibliographic information

  • Book Title From Saviour to Guarantor
  • Book Subtitle EU Member States’ Economic Intervention During the Financial Crisis
  • Authors Fabio Bassan
    Carlo D. Mottura
  • Series Title Roma Tre Business and Finance Collection
  • DOI https://doi.org/10.1057/9781137441560
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2015
  • Publisher Name Palgrave Macmillan, London
  • eBook Packages Palgrave Economics & Finance Collection Economics and Finance (R0)
  • Hardcover ISBN 978-1-137-44155-3
  • Softcover ISBN 978-1-349-56135-3
  • eBook ISBN 978-1-137-44156-0
  • Edition Number 1
  • Number of Pages XVI, 159
  • Number of Illustrations 22 b/w illustrations, 0 illustrations in colour
  • Topics Financial Accounting
    Economic Policy
    Commercial Law
  • Buy this book on publisher's site