Monetary Financing Ban in the EU Law
| Authors | |
|---|---|
| Year of publication | 2018 |
| Type | Article in Proceedings |
| Conference | The Challenges of Local Government Financing in the Light of the European Union Regional Policy |
| MU Faculty or unit | |
| Citation | |
| Web | Open access sborníku |
| Keywords | European Union; Monetary Financing Ban; Public Deficits; Monetary Policy; Sovereign Bonds; Treaty on the Functioning of the EU; Court of Justice of the EU |
| Attached files | |
| Description | Monetary financing is prohibited in most of the modern countries. The European Union bans the practice of monetary financing even in one of its core laws, i.e. in the Treaty on the Functioning of the European Union. Despite this explicit ban, some of the steps taken by the European Central Bank were considered by some as an example of the monetary financing and have been subject to review by the Court of Justice of the European Union. In this paper, the author outlined the fundamental cases dealing with the potential breach of the monetary financing in the EU. One of these cases is – at the time of finalizing this paper – still to be decided. As the CJEU decision might significantly affect the monetary policy of the Euro area, right now, till the CJEU decision will be made, the monetary policy in the EU is rather hard to predict. |
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