Chicago Journal of International Law


The sovereign debt crisis in the European Union has put significant pressure on the fundamental divisions of power between the Union government and member states. One part of the recommended solution for the crisis calls for the imposition of mandatory collective action clauses and extended maturities for all sovereign bonds issued by member states, the first instances of Union-wide fiscal policy choices being forced upon member states. After an explanation of the relevant bond terms, this Comment evaluates the validity of the proposed mandates based on the current state of the framework of power in the EU and concludes that the mandates are valid under the EU implied powers doctrine. The Comment also explains why the acceptance or rejection of these bond-term mandates has the potential to lead to either the full integration or dissolution of the EU.