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Tuesday, March 23, 2010

The no-bailout clause of the Lisbon Treaty

Article 125 of the Lisbon Treaty (2007):

  • The Union shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project. 
  • A Member State shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of another Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project.

2 comments:

Anonymous said...

Clause 125 of the Treafy of Lisbon has quite clearly been deliberately breached. What are or could be the consequencies of this?

Christopher T. Mahoney said...

No competent legal authority has declared that the treaty has been violated.