Public Security Exceptions under Economic and Monetary Union

A short while ago the European Banking and Financial Law Journal published my paper on EU Member State’s power to invoke – or not – Article 297 of the EC Treaty to derogate from EC Treaty provisions regarding European Economic and Monetary Union. The abstract may be found below.

 

Atilla Arda, “Public Security Exceptions under Economic and Monetary Union – A legal analysis of invoking Article 297 EC to derogate from EC Treaty provisions regarding European Economic and Monetary Union”, European Banking and Financial Law Journal (Euredia), p. 221-261, 2006/2

 

Abstract

This contribution explores public security exceptions that may be invoked within the framework of Economic and Monetary Union (EMU). The analysis is centered on Article 297 of the EC Treaty, which principally entails a sweeping derogation capable of authorising the temporary suspension of all of the ordinary rules governing EMU in the event of serious threats to Member States’ internal and external security.

 

The analysis shows that Article 297 has to be seen as a last resort. A too-easy invocation of this provision would diminish the importance of several principles of Community law and impair the binding nature of Community law and its uniform application and judicial review.

 

Based on Article 297, a Security Exceptions Roadmap is constructed and applied to the EC Treaty’s EMU Chapter. It is concluded that although Article 297 is in principle applicable within the context of EMU, it is very hard for Member States to invoke Article 297, especially where the “M” part of EMU is concerned.

 

To stress the Community’s preparedness in the face of security threats, it is submitted that the Community may consider adopting a “Regulation on Economic Emergency Powers”, setting out in advance the substantive and procedural provisions according to which emergencies will be handled.