Opis: | The purpose of this study is to explore what are the legal options for the withdrawal of the Member State from the European Union (EU) and the withdrawal of the Member State from the euro area. Until 2009, when the Lisbon Treaty entered into force and introduced Article 50 of the Treaty on European Union (TEU), the possibility for Member States to withdraw from the EU was not clearly regulated anywhere. Following the introduction of a withdrawal clause, there is no longer any doubt that the withdrawal from the EU is possible. An example of withdrawal from the EU will possibly take place in the near future, as withdrawal from the EU was voted at the historic referendum by United Kingdom's voters on 23 June 2016. Although the referendum is not legally binding the Prime Minister at the time, David Cameron, promised to respect the decision to leave the EU. Withdrawal from the EU can hold many adverse consequences, both for the withdrawing Member state, as well as for the EU itself. Issues regarding the impact on the market and economy arises, as well questions regarding relations between countries after the withdrawal of a Member State from the EU. Other issues include the impact on employment, health care, protection of passengers in air transport, agriculture, consumer rights, and a range of other fields.
Actual implications of the withdrawal depend on the outcome of biennial negotiations between the EU and the Member State that wishes to withdraw. Geographical position of the withdrawing Member State, its size and economic strength also affect negotiations. For small, economically weaker countries withdrawal from the EU would probably be difficult to afford. This is likely not only due to the process itself, but to a greater extent due to consequences regarding political relations, the economy and all of the aforementioned areas. In the case of United Kingdom I would like to point out that the United Kingdom is not a member of the euro area, which may partly make their exit from the EU easier.
Various possibilities for Member States to withdraw from the euro area are also explored in this thesis. Withdrawal from the euro area is not provided in the EU treaties, so the question arises if it is at all possible for a Member State to withdraw from the euro area without simultaneous withdrawal from the EU. The most legally plausible solution is that if a Member State wishes to withdraw from the euro area it should also withdraw from the EU as a whole. Of course there is also a theoretical possibility to change existing contracts which is more unlikely, because it requires unanimity of all Member states.
During the Greek crisis in 2015, when Greece was again on the verge of bankruptcy, the question arose as to whether Member States are entitled to expulse another Member State from the euro area, if that Member State seriously violates EU rules. Article 60 of the Vienna Convention on the Law of Treaties provides this possibility, but the European Court of Justice has repeatedly ruled that the breach of EU treaties is settled within the EU treaties themselves, not under international law. Those EU treaties provide only financial penalties which in the case of Greece no longer make sense or provide leverage. Therefore, the expulsion of a Member state is currently not possible. |
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