The State's Intervention in the System of Loss Distribution in the Event of an Imbalance in German Banks in the Light of Selected Principles and Requirements of the European Economic Constitution in the Lisbon Treaty

The state market interventions in the German banking sector of the last decade seem to have contradicted the European Economic Constitution in the Treaty of Lisbon by the increasing interventionism of the German state and the European Union. The first step of this study is to theoretically capture the concept and content of the European Economic Constitution, based on the reform of the Treaty of Lisbon. The content of the European Economic Constitution is ascertained on the underlying economic system decision and the associated fundamental principles for the design of state market interventions. In the next step, the examined state market interventions in the German banking sector are worked out as the subject of the study: the activity of public-law banks in Germany, the state bank rescue as a result of the combined financial and sovereign debt crisis as well as the design of the European Banking Union. The object and aim of this study is to consider the mentioned state market interventions in the German banking sector in the light of the elaborated basic principles of the European Economic Constitution and its economic system decision. Special attention is being paid to the design of the European Banking Union resolution mechanism. The liability structure of the Single Resolution Mechanism (SRM) is considered in comparison to liability structures for German banks, “Anstaltslast and Gewährträgerhaftung”, which were forbidden due to state aid reasons in 2001