The Resolution of Sovereign Debt Crises

The insolvency of states is by no means a rare or new phenomenon. Despite this, it still seems to be widely felt that states do not go bankrupt. As of yet, there are no regulated insolvency proceedings for states.

This book examines the current mechanisms for solving sovereign debt crises. It presents an analysis of their weaknesses and shows possibilities for dealing with such crises in the future. In this respect, the work focusses on crisis resolution measures at European level: the aid packages for Greece, the European Financial Stabilisation Mechanism, the European Financial Stabilisation Facility and the European Stability Mechanism. These are examined for their appropriateness as well as whether they contain elements of insolvency law. Ultimately, it explores possible insolvency proceedings for states at EU level and their implementation options.