LEGAL ASPECTS OF THE TREATY ON STABILITY, COORDINATION AND GOVERNANCE IN THE ECONOMIC AND MONETARY UNION

Abstract

The Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (“FiscalCompact”) was concluded by Heads of State or Government of 25 EU Member States in March 2012 asanother instrument the objective of which is strengthening the fiscal discipline and stabilization of the euroarea as a whole. Similar to the preceding initiative – the Euro Plus Pact – this treaty also envisages deeper coordinationof economic policies of the participating Member States. It is, however, a legally binding agreementin which not all EU Member States participate and which was concluded outside the framework of the EUlaw. The article deals with legal but to some extent also economic aspects of the Fiscal Compact and it focusesin particular on four problematic issues: 1) its relationship to EU law and ensuing obligations for the MemberStates; 2) the use of EU institutions for its implementation; 3) its relationship to the Czech Constitution andevaluation of its constitutional classification; 4) the question to what degree it changes the functioning ofthe economic and monetary union within the euro area.