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Maastricht Treaty Article 103 (a)
Many legal fees will be spent in the coming days and weeks for the proper "market-friendly" interpretation of the following clause from the Maastricht Treaty:
ARTICLE 103 a
1. Without prejudice to any other procedures provided for in this Treaty, the Council may, acting unanimously on a proposal from the Commission, decide upon the measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of certain products.
2. Where a Member State is in difficulties or is seriously threatened with severe difficulties caused by exceptional occurrences beyond its control, the Council may, acting unanimously on a proposal from the Commission, grant, under certain conditions, Community financial assistance to the Member State concerned. Where the severe difficulties are caused by natural disasters, the Council shall act by qualified majority. The President of the Council shall inform the European Parliament of the decision taken.
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Beyond control?
Yes, you see, this debt materialized randomly.
the lega lbeagles will be trying the darnest to make this work for them ..... wonder what the maret will think of those shenanigans. Wait, why ask that? going up?!
"beyond its control" - my arse!
about to get much worse...
reading: http://stocknews.freeoda.com
GOD DAMN IT CETIN
YOU ALREADY SINGLE-HANDEDLY RUINED SEEKINGALPHA
GET THE F*** OFF OF ZERO HEDGE!
Stop replying to him and he'll slither off to go blow himself. Keep replying to his lameness and he'll become your new best friend.
You can drive a truck through that hole, it is absolutely wide open.
Maybe someone can advance the "natural disaster" clause to avoid a unanimous vote?
Thanks for being on top of this Tyler.
I see Dubai was in the news a bit today in re $22B of bond standtills, but, as we all know, everything is okay on that front. Phew....
Well, if you buy the "i-banks and hedge funds did it"
account of the Greek crisis then the solution is simple. If Morgan Stanley and GS could be officially redesignated as depositary banks, now they can be officially redesignated as natural disasters.
Key concept here is,"May, act..."
"Where a Member State is in difficulties or is seriously threatened with severe difficulties caused by exceptional occurrences beyond its control......"
Reminds me of a conversation I overheard in a bank years ago where a cronically overdrawn customer is pleading with the customer service representative.
"Make me stop writing bad checks."
Good morning, you stupid bulls. The reflation trade is dead. We are about to enter the biggest depression in the history of the world. HYPER-DEFLATION. The stock market is going to crash.
"Seriously threatened with severe difficulties caused by exceptional occurences.....grant financial assistance"? The entire incident was a misunderstanding, a Socratic Fallacy. So someone should grant the Greeks a 50 Billion Euro line of credit with a quickness.
"if severe difficulties arise in the supply of certain products."
Tough to know if the reference would be to Euro or brains.
Regards.
This is supposed to be a happy occasion.
Lets not bicker and argue over who killed who!
+1000000000000000000000000000000000!
`certain products` = finance!!!
exceptional occurrences....yes. Beyond Greek control....NO, they can theoretically control their spending urges
This "Natural disaster" clause has been very popular the past few years. Many try to claim a recession is similar to a natural disaster since its an unexpected economic shock. Just a ridiculous excuse to force payouts. Fiscally irresponsible retardation is now next to Hurricane Hugo in the encyclopedia.
Well wait till they get a look at Hurricane Ben and his aftermath. The eye of the storm is just about crossing overhead now. The biggest hurricanes have the largest eyes.
Greek debts are not beyond their control. It was the Greek government that created those mountains of debts and faked statistics.
NO BAILOUT for them.
It worked well for GS JPM MSDW why not for their cousins the Greeks?
"unanimously"
And herein lies the problem of the EU...
here comes the PPT...right on time
1. Without prejudice to any other procedures provided for in this Treaty, the Council may, acting unanimously on a proposal from the Commission
And cue intensive round of horsetrading at the summit thurs/Friday
What should the UK hold out for - binning the draft AIFM directive at a minimum
And thus another round of Bailout Bingo commences. Who will it be next week? Stay tuned and find out.
Latest news: http://stocknews.freeoda.com
It means they need every one of them to vote in favor of the bailout.
Why? (because natural disasters take a majority, meaing unanimous, means, unanimous)
That's why it's the soverignity sucking killer of a crap law. Greece is now dependant on a unanimous vote by the big wigs APPOINTED, NOT ELECTED, by the bankers/TPTB of OTHER NATIONS, to bail them out. Which of course can come with austerity plans rather than being able to do what they want themselves without agreeing to austerity.
Of course it was joining the euro, which was a central cog in an extremely broken system that's got them here, not social spending.
Amazing. Unanimous. ....and you thought the filibuster here in the U.S. requiring a mere 60 out of 100 was used in asinine ways, imagine having to be 'bipartisan' to the point where EVERY republican or democrat or independant had to agree with you. (of course much smaller numbers, but unanimous is difficult nonetheless)
You want consensus when dealing with matters, to get the best solution, so it is the toughest, but consensus among monetarists is a whole other ball game where consensus is NOT the ideal.
Mr. Durden,
Next post should be on who/which banks are profiting off this collapse, how they got themselves in such an amicable position & to what degree.
Dimon's Greek...let him ante up as a show of solidarity.
What's a Grecian urn anyway?
Its irrelevant really. Its like celebrating the sale of Bear Stearns as the end of the meltdown.
Denninger has a good rant on this - the impossibility of the math makes this so laughable. Rallies are to be sold in SP, EUR, Gold, etc. Dollar is king when you look at the other garbage out there. And deny as you might, dollar strength acts as a global margin call on leveraged positions.
http://market-ticker.denninger.net/archives/1948-Hahahah...-Greecefire-Prompts-Intervention-Rumors.html
Its irrelevant really. Its like celebrating the sale of Bear Stearns as the end of the meltdown
Incredibly well said! +100
Lisbon treaty article 122 is newer
It's not the Lisbon Treaty, it's the Treaty on the Functioning of the European Union. And look at Art. 125 of said treaty.
On a really fun idea to rescue Greece today was an EU member. His proposal: The KfW could buy Greek government bonds.
Planned by the federal government bailout for Greece could, after words of the German EU Member Wolf Klinz on state-owned banks such as the Kreditanstalt fur Wiederaufbau (KfW) run.
Banks like KfW could buy Greek government bonds, said Klinz, who heads a committee on the financial crisis. Klinz admitted insider told Reuters, however, have no direct knowledge of the ongoing negotiations on the rescue operation.
Klinz pointed out that EU law prohibits direct subsidies. If the EU as a whole would offer assistance could, be done through structural funds, said further Klinz.
It's actually not the Maastricht Treaty which is in force, but Art. 122, the Treaty of the Functioning of the European Union:
(http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2008:115:0047...)
"Article 122
(ex Article 100 TEC)
1. Without prejudice to any other procedures provided for in the Treaties, the Council, on a
proposal from the Commission, may decide, in a spirit of solidarity between Member States, upon the
measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of
certain products, notably in the area of energy.
2. Where a Member State is in difficulties or is seriously threatened with severe difficulties caused
by natural disasters or exceptional occurrences beyond its control, the Council, on a proposal from the
Commission, may grant, under certain conditions, Union financial assistance to the Member State
concerned. The President of the Council shall inform the European Parliament of the decision taken."
I will check if there is any case law from the Court of European Union related to this article.
It is called the European Court of Justice, but I don't expect the strongest resistance to happen there. The Karlsruhe Constitutional court in Germany also see itself as the ultimate authority of Interpretation of Treaties, as far as German involvement is necessary. In the Greek case, it is obvious that German Money has to be on the line !
A bail-out in the form of a non cash commitment (Guarantee) contingent on a Karlsruhe Constitutional court to happen in 6 months time wouldn't necessarily be enough for the markets, considering that such bail-outs is so much against both the letter and the spirit of the Treaties.
see http://www.germanlawjournal.com/pdfs/Vol10No08/PDF_Vol_10_No_08_1277-128...
And of course, you have to take into consideration the "no-bailout clause" of the TFEU:
Article 125
(ex Article 103 TEC)
1. The Union shall not be liable for or assume the commitments of central governments, regional,
local or other public authorities, other bodies governed by public law, or public undertakings of any
Member State, without prejudice to mutual financial guarantees for the joint execution of a specific
project. A Member State shall not be liable for or assume the commitments of central governments,
regional, local or other public authorities, other bodies governed by public law, or public undertakings
of another Member State, without prejudice to mutual financial guarantees for the joint execution of a
specific project.
2. The Council, on a proposal from the Commission and after consulting the European
Parliament, may, as required, specify definitions for the application of the prohibitions referred to in
Articles 123 and 124 and in this Article.
Europe named Island a terrorist state over the Landsbanki deposits, so I can definitely see them naming "financial market speculation" as natural disaster.
Not a big stretch tbh.
Well...if there is no case-law about these articles, we will certainly see some in case of a bailout. You know, we lawyers need to party sometimes, too...
can't wait to see the movie: My Big Fat Greek Meltdown
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