Judicial review in the Eurozone: The court system as regulator? The case of the sovereign debt crisis

Heidemann, M. and Thomas, D. (2016) Judicial review in the Eurozone: The court system as regulator? The case of the sovereign debt crisis. In: Andenas, M. and Deipenbrock, G. (eds.) Regulating and Supervising European Financial Markets: More Risks than Achievements. Springer International Publishing: Heidelberg ; New York, pp. 337-363. ISBN 9783319321721 (doi: 10.1007/978-3-319-32174-5_14)

Abstract

This chapter examines the possibilities for judicial review of regulatory and supervisory acts in the current legal framework for capital markets at European Union level and its legal nature. After introducing the legal framework in general, the focus is on the first ever referral made to the Court of Justice of the European Union by the German Federal Constitutional Court as an example of the role of the judiciary within this framework. The authors critically enquire into the possibilities of retrospective adjudication of regulatory and monetary decisions, here the decision by the European Central Bank to purchase sovereign bonds of certain Member States on the open market, so called outright monetary transactions. The authors observe that while the decision itself may have supported markets as expected the ensuing litigation has the potential to do a disservice to the rule of law. They contend—subject to a defined understanding of regulation—that the courts can indeed be said to assume a role as regulator, however involuntary and however desirable this may be.

• Item Type: Book Sections
• Status: Published
• Glasgow Author(s) Enlighten ID: Thomas, Dr Dania and Heidemann, Dr Maren
• Authors: Heidemann, M., and Thomas, D.
• College/School: College of Social Sciences > Adam Smith Business School > Economics; College of Social Sciences > School of Law
• Publisher: Springer International Publishing
• ISBN: 9783319321721