The Resolution of Sovereign Debt Crises

The insolvency of states is by no means a rare or new phenomenon. Nevertheless, it still seems to be common sense that “states don’t go bust". So far, there are no regulated bankruptcy proceedings for states, although there is no lack of proposals for such proceedings on an international level. The present work deals with the current mechanisms for solving sovereign debt crises, presents their weaknesses and indicates options for dealing with such crises in the future. In this respect, the work focuses on crisis resolution measures at European level: the aid packages for Greece, the EFSM, the EFSF and the ESM. These are examined for their appropriateness as well as whether they contain elements of insolvency law. Ultimately, possible insolvency proceedings for states at EU level and their implementation options are discussed.