Tuomas Malinen+ Your Authors @mtmalinen PhD econ. CEO of GnS Economics. Adj. Professor of Economics @ Uni Helsinki. Economic growth, economic crises, monetary unions and central banks. May. 08, 2020 1 min read + Your Authors

Two years ago we published a piece entitled "How to leave the Eurozone: The case of Finland".

We interviewed several constitutional and EU-law experts to see whether there's a way out of euro.

There is, and jurisdiction lay on national authorities. 1/8

These are the most important parts.

There are three international and/or EU law arguments that can be used justify an euro exit:

1.National emergency
2.Other force majeure
3.A change or violation of the Acts of the Treaties and/or principles of the Eurozone.


"The most credible and legally viable path out of the euro for any member country of the eurozone is based on the transition of the currency union into something different than the one that member states originally joined.

There is no lack of potentially critical..." 3/

"...and strategic institutional changes, which diminish the sovereignty of euro member countries.

For example, turning the ESM into “the European IMF” and a rainy-day fund offering financing to countries suffering economically could require changes in the Treaty and..." 4/

"...open a negotiable exit to countries not willing to proceed into tighter union.

In any case, large institutional developments within the euro area are could provide justification for an exit."

But, the decision of the CC when joining the euro was the most intriguing. 5/

"“If monetary union is unable to continuously develop the stability attained at the start of the third stage, it would abandon this contractual concept according to the agreed stability mandate”

If the eurozone started to develop into a transfer union and thus, if... 6/

“[…] government would assume that it has no chance of having its interest considered adequately, Germany would have a constitutional mandate to leave the euro."

So, this quite obviously show that national constitutional courts have jurisdiction over the ECJ. 7/

So, the Germanys's Constitutional Court, deciding on Germany's domestic issues like the Bundesbank, has the jurisdiction over the ECJ.

Like we wrote, and like the legal expert we consulted concluded, euroexit is purely a national matter. /End

Freely downloadable, older version in the SSRN:  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3024551 

You can follow @mtmalinen.


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