EU Law After the Financial Crisis.Indb

EU LAW AFTER THE FINANCIAL CRISIS

Edited by Jessica Schmidt Carlos Esplugues Rafael Arenas García

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EU Law aft er the Financial Crisis © Th e editors and contributors severally 2016

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ISBN 978-1-78068-342-3 D/2016/7849/27 NUR 820

British Library Cataloguing in Publication Data. A catalogue record for this book is available from the British Library. CONTENTS

List of Abbreviations ...... xi List of Authors ...... xvii

Introduction Jessica Schmidt, Carlos Esplugues and Rafael Arenas García ...... 1

PART I. RESCUE MECHANISMS AND MONETARY POLICY

Th e Interplay Between EU Law and International Law to Set Up the Eurozone Rescue Mechanisms Antonio Pastor Palomar ...... 5

1. Introduction: a Body of Law in the Making Against an Ambivalent Framework ...... 5 2. Th e Greek Financial Conundrum: the Diffi cult Fulfi lment of its International Obligations ...... 8 3. Th e European Financial Stabilisation Mechanism, the European Financial Stability Facility ...... 12 4. Th e European Stability Mechanism Together with the “Fiscal Compact” ...... 18 5. Conclusions: Urgency and Complexity of the Legal Measures ...... 22

Monetary Policy and Private Pensions Markus Roth ...... 25

1. Central Banks and Full Employment ...... 25 2. Th e Commitment of the ECB to Article 15 of the Charter of Fundamental Rights of the EU ...... 27 3. Strengthening Occupational Pensions ...... 28

Intersentia v Contents

PART II. THE IMPACT OF THE FINANCIAL CRISIS ON THE BANKING SECTOR AND CAPITAL MARKETS

Financial Crisis and European Company and Capital Markets Law Jessica Schmidt ...... 33

1. Financial Crisis and European Capital Markets Law ...... 34 2. Financial Crisis and European Company Law ...... 42 3. Conclusion ...... 45

CoCo Bonds as a Means of Reducing Systemic Risk and their Role within New Regulatory Regimes Henrik Gildehaus ...... 47

1. Introduction ...... 47 2. CoCo Bonds: a Brief Insight into their Basic Features ...... 49 3. CoCo Bonds and Regulatory Capital Regimes in the EU ...... 55 4. CoCo Bonds and Resolution Regimes ...... 57 5. TLAC/GLAC ...... 60 6. Risks Associated with CoCo bonds ...... 61 7. Conclusions ...... 62

Is EU Financial Law Overly Complex? Matthias Lehmann ...... 65

PART III. THE FINANCIAL CRISIS AND TAX LAW

Th e European Crises as Tax Crises Agustín J. Menéndez ...... 71

1. Th e European Tax trompe-l’oeil ...... 72 2. Integration through Fiscal Consolidation: Taxes in the Indebted State . . . . 75 3. Excursus: the Th ree Capital Sins of European Lawyers ...... 87 4. Reconciling (Again) Integration and the Social and Democratic Tax State ...... 89 5. Conclusions ...... 93

A Common Tax Policy for Europe André Meyer ...... 97

1. Th e Lack of Integration in the Field of Direct Taxation ...... 97 2. Tax Competition, Financial Crisis and the Crisis of the EU ...... 99 3. Current Problem Areas and Possible Responses ...... 102 4. Summary ...... 106 vi Intersentia Contents

PART IV. THE FINANCIAL CRISIS, CONSUMERS AND CONSUMER LAW

Is European Private Law Going Th rough a Crisis? Th e Current Situation of European Private Law aft er the Financial Crisis Phillip Hellwege ...... 109

1. Introduction ...... 109 2. European Private Laws and the Financial Crisis ...... 110 3. European Private Law and the Financial Crisis ...... 114 4. Conclusion ...... 116

Financial Crisis and General Contract Law Ann-Chantal Gressler ...... 117

1. Introduction ...... 117 2. Financial Crisis ...... 118 3. New Financial Supervisory System in the European Union aft er the Financial Crisis ...... 118 4. Eff ects of Financial Regulation ...... 122 5. Conclusion ...... 129

Stress-Testing EU Law in the Field of Consumer Redress Guillermo Palao Moreno ...... 133

1. Introduction ...... 133 2. Financial Crisis and Justice to Consumers in the Internal Market ...... 134 3. Th e Failures of the Jurisdictional Approach ...... 135 4. Th e Limits of the European Small Claims Procedure for Consumers . . . . 136 5. Th e Diffi culties Linked to Cross-Border Collective Actions for Consumers ...... 138 6. Support for ADR and ODR Schemes ...... 140 7. Assessment ...... 144

Stress Testing of European Law of Consumer Jurisdiction. Coherence of the Existing Rules and their Impact on the Level of Consumer Protection Malte Kramme ...... 147

1. Introduction ...... 147 2. Overview of Consumer Jurisdiction in EU and German Law ...... 149 3. Harmonised Consumer Jurisdiction as an Instrument of Consumer Protection? ...... 154 4. Conclusion ...... 159

Intersentia vii Contents

PART V. THE FINANCIAL CRISIS AND COMPETITION LAW

Rethinking Competition Law aft er the Financial Crisis Rupprecht Podszun ...... 163

1. Enforcement Activities before the Crisis ...... 165 2. Enforcement Activities aft er the Crisis ...... 172 3. Reforming Rules ...... 181 4. Summary ...... 186

Merger Control and the Financial Crisis. Rescue Mergers and the Failing Firm Defence Marius Leber ...... 187

1. Introduction ...... 188 2. European Merger Control Regime ...... 188 3. Final Decision and Remedies ...... 192 4. Merger Control During the Financial Crisis ...... 192 5. Summary ...... 208

PART VI. THE FINANCIAL CRISIS, RESTRUCTURING AND INSOLVENCY LAW

Universal versus Individual Transfers of Assets and Liabilities. A Confl ict-of-Laws Perspective Francisco Garcimartín Alférez ...... 211 1. Introduction ...... 211 2. Individual versus Universal Transfer of Assets ...... 212 3. Confl ict-of-Law Problem ...... 215 4. Special Rules for Universal Transfers by Operation of Law ...... 219 5. Conclusion: Formal Proposal ...... 225

Financial Crisis and European Insolvency Law Michael F. Müller ...... 227

1. Introduction ...... 227 2. Financial Markets and Insolvency Law ...... 228 3. Real Markets and Insolvency Law ...... 231 4. State Insolvency Law ...... 233 5. Conclusion ...... 234

viii Intersentia Contents

International Arbitration and vis attractiva concursus Manuel Penades Fons ...... 237

1. Open Questions and the Role of EU Law ...... 237 2. Th e Current Rules ...... 239 3. Th e Apparent Rule in the EIR and the Elektrim v. Vivendi Case ...... 241 4. Vis attractiva concursus in International Litigation ...... 243 5. Th e Apparent Implications for Arbitration ...... 245 6. Arbitration Agreements as Contracts and the General Rule of Article 4(1) EIR ...... 247 7. Th e Details of the Rule ...... 249 8. Final Remarks ...... 251

PART VII. THE SOCIAL DIMENSION OF THE FINANCIAL CRISIS AND EU CITIZENSHIP

Refl ections on the Social and Human Dimension of the Economic and Financial Crisis in the European Union Isabel Lirola ...... 255

1. Introduction ...... 255 2. Bailout Measures and Protection of Fundamental “Social” Rights ...... 256 3. Citizenship of the Union and Immigration ...... 258 4. Conclusion ...... 261

New Developments on the Free Movement of Persons in the European Union in a Time of Crisis. Eroding the European Citizenship? Magdalena Martín Martínez ...... 263

1. Introductory Remarks ...... 264 2. Some Brief Refl ections on the Current Crisis as a Starting Point ...... 264 3. New Developments Restricting the Right to Free Movement of Persons . . 267 4. Some Factual Counter-Arguments and a Legal Paradox ...... 272 5. Tentative Conclusions: to What Extent are these New Developments Eroding EU Citizenship? ...... 274

Intersentia ix Contents

PART VIII. REFLECTIONS ON THE IMPACT OF THE FINANCIAL CRISIS ON THE GENERAL EUROPEAN LEGAL FRAMEWORK AND THE FUNDAMENTAL “EUROPEAN IDEA”

Legal Certainty aft er the Crisis. Th e Limits of European Legal Imagination Pablo Martín Rodríguez ...... 279

1. Th e New Parameters of Legal Certainty aft er 2007 ...... 280 2. Th e European Legal Imagination: the EU Legal Response to the Crisis . . 287 3. Th e Limits of European Legal Imagination...... 293 4. Conclusion ...... 299

Th e New Role of Judges in the EU. Going Back to the Middle Ages Rafael Arenas García ...... 301

1. Introduction ...... 301 2. Courts and Law ...... 304 3. Multiple leges fori ...... 309 4. An Old New Approach ...... 313 5. Th e New World ...... 315

Exploring the European Crisis’s Political Discourse. Europe as a Consciousness, Europe as a Narrative Paloma García Picazo ...... 317

1. Europe: an Objective Social Space Facing the Prophecies of its “Crisis” . . 318 2. Th e Implicate Order of Surveys: What Development of What European Consciousness? ...... 320 3. Th e Explicate Order of the European Narrative: Implied Subjects and Explicated Objects ...... 322 4. Th e Discourse of Truth in the Political Order: Credulity – Credit – Credibility ...... 323 5. From Europe’s Mortal Crisis to the chanson de geste of its Propaganda . . 326 6. Th e Crisis of Europe or a Crisis in Europe? Extracting Some Order from the Noise ...... 330

Testing the Stress of the EU: Financial Crisis or EU Law in Crisis? Volker Wiese ...... 333

x Intersentia LIST OF ABBREVIATIONS

AcP Archiv für die civilistische Praxis ACQP Principles of the Existing EC Contract Law ADR alternative dispute resolution AEDIPr Anuario español de Derecho internacional privado AEUV Vertrag über die Arbeitsweise der europäischen Union (Treaty on the Functioning of the European Union) AG Advocate General AIFMD Alternative Investment Fund Managers Directive AktG Aktiengesetz (German Stock Corporation Act) AT1 additional tier 1 B2B business-to-business B2C business-to-consumer BaFin Bundesanstalt für Finanzdienstleistungsaufsicht (Federal Financial Supervisory Authority) BB Betriebs-Berater BEPS Base Erosion and Profi t Shift ing BGB Bürgerliches Gesetzbuch (German Civil Code) BGBl. Bundesgesetzblatt (Federal Law Gazette) BKR Zeitschrift für Bank- und Kapitalmarktrecht BOE Boletín Ofi cial del Estado BOEA Bank of England Act of 1998 BR-Drs. Bundesratsdrucksache BRRD Bank Recovery and Resolution Directive BT-Drs. Bundestagsdrucksache BVerfG Bundesverfassungsgericht (German Federal Constitutional Court) CAP Common Agricultural Policy CBM Cross-Border Mergers CC Spanish Civil Code CCCTB common consolidated corporate tax base CCP central counterparties CDE Cahiers de Droit Européenne CDS credit default swaps CEBS Committee of European Banking Supervisors CESL Common European Sales Law

Intersentia xi List of Abbreviations

CET1 common equity tier 1 CFL Corporate Finance Law CFPB Consumer Financial Protection Bureau CJEL Columbia Journal of European Law CJEU Court of Justice of the European Union C.M.L. Rev. Common Market Law Review CMU Capital Markets Union CoCo bonds contingent-convertible bonds COMI centre of main interests CRA credit ratings agency CRD Capital Requirements Directive CRR Capital Requirements Regulation CSDR Central Securities Depositories Regulation CYELS Cambridge Yearbook of European Legal Studies DCFR Draft Common Frame of Reference DGS Deposit Guarantee Scheme DG Directorate General DRiZ Deutsche Richterzeitung DTA deferred tax asset EBA European Banking Authority ECB European Central Bank ECHR European Convention on Human Rights ECLR European Competition Law Review ECSR European Committee of Social Rights ECtHR European Court of Human Rights EFSF European Financial Stability Facility EFSM European Financial Stabilisation Mechanism EFTA European Free Trade Area EGBGB Einführungsgesetz zum Bürgerlichen Gesetzbuch (Introductory Law to the German Civil Code) EIOPA European Insurance and Occupational Pensions Authority EIR European Insolvency Regulation ELR European Law Review ELTIF European Long-term Investment Funds EMIR European Market Infrastructure Regulation EMU Economic and Monetary Union ESA European Supervisory Authorities ESFS European System of Financial Supervision ESM European Stability Mechanism ESMA European Securities and Markets Authority ESMT Treaty on the European Stability Mechanism ESRB European Systemic Risk Board

xii Intersentia List of Abbreviations

EuCML Journal of European Consumer and Market Law EuR Europarecht EURIBOR Euro Interbank Off ered Rate ECC-Net European Consumer Centres Network EuSEF European social entrepreneurship funds EuVECA European venture capital funds EuZW Europäische Zeitschrift für Wirtschaft srecht EWS Europäisches Wirtschaft s- und Steuerrecht EEJ-Net Extra-Judicial Network FCA Financial Conduct Authority FFA Financial Assistance Facility Agreement fn. footnote FROB Fondo de Restructuración Ordenada Bancaria FSB Financial Stability Board FTC Federal Trade Commission GC General Court GDP gross domestic product GLAC gone-concern loss-absorbing capacity GLJ German Law Journal GPR Zeitschrift für Gemeinschaft sprivatrecht GRUR-Prax Gewerblicher Rechtsschutz und Urheberrecht – Praxis im Immaterialgüter- und Wettbewerbsrecht GWB Gesetz gegen Wettbewerbsbeschränkungen (Act against Restraints of Competition) GWR Gesellschaft s- und Wirtschaft srecht HFT high frequency trading ICCLR International Company and Commercial Law Review ICLQ International & Comparative Law Quarterly IILR International Insolvency Law Review IMF International Monetary Fund IStR Internationales Steuerrecht JCMS Journal of Common Market Studies JECLAP Journal of European Competition Law & Practice JEL Journal of European Law JIBLR Journal of International Banking Law and Regulation JPIL Journal of Private International Law JST joint supervisory team JURA Juristische Ausbildung JuS Juristische Schulung JZ JuristenZeitung KJ Kritische Justiz KTS KTS – Zeitschrift für Insolvenzrecht

Intersentia xiii List of Abbreviations

KWG Kreditwesengesetz (German Banking Act) LCIA London Court of International Arbitration LIBOR London Interbank Off ered Rate LMK beck-fachdienst Zivilrecht – LMK MAD Market Abuse Directive MAR Market Abuse Regulation MIF multilateral interchange fees MiFID Markets in Financial Instruments Directive MiFIR Markets in Financial Instruments Regulations MMF money market funds MOU Memorandum of Understanding MREL minimum requirement for own funds and eligible liabilities MRO main refi nancing operation MTF multilateral trading facilities NCAs national competent authorities NJOZ Neue Juristische Online-Zeitschrift NJW Neue Juristische Wochenschrift NVwZ Neue Zeitschrift für Verwaltungsrecht NZG Neue Zeitschrift für Gesellschaft srecht NZI Neue Zeitschrift für Insolvenzrecht NZKart Neue Zeitschrift für Kartellrecht ODR online dispute resolution OECD Organisation for Economic Co-operation and Development OJ Offi cial Journal of the European Union OJLS Oxford Journal of Legal Studies ORDO Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft OTC over-the-counter PECL Principles of European Contract Law PIL private international law PLIR Polish Law on Insolvency and Restructuring PONV point of non-viability PRIIPs packaged retail and insurance-based investment products PSD Payment Services Directive PVS Politische Vierteljahresschrift RabelsZ Rabels Zeitschrift für ausländisches und internationales Privatrecht RdF Recht der Finanzwirtschaft REDC Revue européenne de droit de la consommation REDI Revista Electrónica de Derecho Informático REEI Revista Electrónica de Estudios Internacionales RIW Recht der Internationalen Wirtschaft RWA risk weighed assets

xiv Intersentia List of Abbreviations

SEPA Single European Payment Area SIFIs systematically important fi nancial institutions SRB Single Resolution Board SRF Single Resolution Fund SRM Single Resolution Mechanism SSM Single Supervisory Mechanism SSR Short Selling Regulation StuW Steuer und Wirtschaft TEU Treaty of the European Union TFEU Treaty on the Functioning of the European Union TLAC total loss-absorbing capacity Ubg Die Unternehmensbesteuerung UCITS Undertakings for Collective Investment in Transferable Securities UmwG Umwandlungsgesetz UrhG Urhebergesetz (German Copyright Act) VAT value added tax VuR Verbraucher und Recht VVDStRL Vereinigung der Deutschen Staatsrechtslehrer VVG Versicherungsvertragsgesetz (Insurance Contract Act) WM Wertpapiermitteilungen YPIL Yearbook of Private International Law ZaöRV Zeitschrift für ausländisches öff entliches Recht und Völkerrecht ZBB Zeitschrift für Bankrecht und Bankwirtschaft ZEuP Zeitschrift für Europäisches Privatrecht ZfgK Zeitschrift für das gesamte Kreditwesen ZGR Zeitschrift für Unternehmens- und Gesellschaft srecht ZHR Zeitschrift für das gesamte Handelsrecht und Wirtschaft srecht ZInsO Zeitschrift für das gesamte Insolvenzrecht ZIP Zeitschrift für Wirtschaft srecht ZPO Zivilprozessordnung (Code of Civil Procedure) ZRP Zeitschrift für Rechtspolitik ZUM Zeitschrift für Urheber- und Medienrecht ZVglRWiss Zeitschrift für Vergleichende Rechtswissenschaft ZWeR Zeitschrift für Wettbewerbsrecht

Intersentia xv LIST OF AUTHORS

Prof. Dr Rafael Arenas García Autonomous University of Barcelona, Spain

Prof. Dr Carlos Esplugues University of Valencia, Spain

Prof. Dr Paloma García Picazo Universidad Nacional de Educación a Distancia (UNED), Spain

Prof. Dr Francisco Garcimartín Alférez Universidad Autónoma de Madrid, Spain

Henrik Gildehaus, LL.M. University of Hamburg, Germany

Ann-Chantal Gressler University of Bayreuth, Germany

Prof. Dr Phillip Hellwege, M.Jur. (Oxford) University of Augsburg, Germany

Dr Malte Kramme University of Bayreuth, Germany

Marius Leber University of Bayreuth, Germany

Prof. Dr Matthias Lehmann, D.E.A., LL.M., J.S.D. University of Bonn, Germany

Prof. Dr Isabel Lirola University of Santiago de Compostela, Spain

Prof. Dr Magdalena Martín Martínez University of Málaga, Spain

Intersentia xvii List of Authors

Prof. Dr Pablo Martín Rodríguez University of Granada, Spain

Prof. Dr Agustín J. Menéndez University of León, Spain

Prof. Dr André Meyer, LL.M. University of Bayreuth, Germany

Dr Michael F. Müller, LL.M. (Austin) University of Bayreuth, Germany

Prof. Dr Guillermo Palao Moreno University of Valencia, Spain

Prof. Dr Antonio Pastor Palomar Universidad Rey Juan Carlos, Madrid, Spain

Dr Manuel Penades Fons London School of Economics and Political Science, United Kingdom

Prof. Dr Rupprecht Podszun University of Bayreuth, Germany

Prof. Dr Markus Roth University of Marburg, Germany

Prof. Dr Jessica Schmidt, LL.M. University of Bayreuth, Germany

Prof. Dr Volker Wiese, LL.M. (McGill) University of Bayreuth, Germany

xviii Intersentia