Opinion by the Luxembourg Council of State on the bill amending the Law of 9 July 2010 on the granting of the state guarantee in connection with the European instrument for the stabilisation of the euro zone (7 September 2011)

On 7 September 2011, the Council of State delivers its opinion on the bill raising the guarantee commitment of the Luxembourg state to the European Financial Stability Facility from EUR 1.15 billion to EUR 2 billion. The Council of State rules that the granting of financial assistance by means of this instrument should be conditional on compliance by the beneficiary Member State with fiscal and macroeconomic adjustments to enable the country to finance itself in the long term on the financial markets. Should the Member State fail to do so, this would imply non-compliance with the ‘no bail out’ clause in Article 125 of the Treaty on the Functioning of the European Union.

Source and copyright

Source: Conseil d’État du Grand-Duché de Luxembourg, Numéro de l'avis : 49.414, Projet de loi modifiant la loi du 9 juillet 2010 relative à l’octroi de la garantie de l’État dans le cadre de l’instrument européen de stabilisation de la zone euro, [ON-LINE]. [Luxembourg]: Conseil d’État du Grand-Duché de Luxembourg, [01.11.2013]. Date de l'avis : 07-09-2011. http://www.conseil-etat.public.lu/fr/avis/2011/09/49_414/49414.pdf .

Copyright: (c) Conseil d'Etat

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