Risk Sharing in the Euro Area : Legal Aspects

The book offers a horizontal legal analysis on the problematic of risk sharing, which arises inevitably in an economic and political integration process, such as in the European Union, and even more so in the euro area. The question is how the burden of adverse economic developments is spread across the integration area, in this case the euro area, whether risk is distributed evenly and what risk sharing mechanisms apply. The book looks at the legal basis and the concrete stage of development of such mechanisms in European law, as well as at divergences among national legal orders and practices as a source for risk asymmetries. Individual contributions refer in particular to the areas of banking, capital markets and unemployment insurance. The point of view adopted in the book is important for everyone who wants to develop a robust understanding of the practical functioning of the complex integration process regulated by EU law. Contents Introduction References The NPLs Services Directive. The Restructuring Toolkit for Asset Quality 1 Introduction 2 The Regulatory Response to NPLs 2.1 The Prudential Regime to Distressed Loans 2.2 The Role of the EBA 2.3 The Accounting Treatment of Credit Losses 3 The Reform of the Credit Servicers Directive 3.1 Regulation No 630/2019 and Directive 1023/2019 4 NPL Restructuring Measures 5 Conclusion References MREL in EU Bank Resolution Law 1 Introduction 2 Function 3 Calibration 4 Towards a More Credible Application of MREL: Subordination 5 Towards a More Credible Application of MREL: Retail Investors 6 Final Remark References Causation Between False Information to Investors and Damage. Comparative Remarks 1 Introduction 2 The Doctrine of Positive Investment Market Sentiment (``Anlagestimmung ́ ́) 2.1 The Presumption of Causation 2.2 The Criticism on the Positive Investment Market Sentiment Doctrine 3 Lessons on Causation from the US: The ``Fraud-on-the-Market ́ ́ Theory 3.1 The ``Fraud-on-the-Market ́ ́ Presumption 3.2 The Efficient Capital Market Hypothesis 3.3 Criticism on the ``Fraud-on-the-Market ́ ́ Theory 3.3.1 Investors Are Not Rational 3.3.2 Markets Are Not Efficient 3.3.3 Rejection of the ``Fraud-on-the-Market ́ ́ Theory in the EU 4 Conclusions References Private Enforcement and EU Market Abuse Regulation: A Discussion on Direct (Class) Actions and Derivative Actions 1 Introduction 2 The (Potential) Role of Private Enforcement-Some General Considerations 3 Whose Loss Is It Anyhow? Setting the Dividing Line Between Direct (Class) Actions and Derivative Actions 4 The State of the Art: A Paneuropean Patchwork 5 Representative/Collective litigation 6 The Prospects of Harmonisation 7 Concluding Remarks References A European Unemployment Insurance in EU Law 1 Introductory Remarks 2 Genuine and Equivalent EUBS: Structure, Financing and Objectives 3 Constitutional Constraints for the Establishment of a EUBS 4 Enacted EU Legislation 5 Concluding Remark References