Eurozone Collective Action Clauses and Specialised Agencies of the United Nations as International Organisations: Do CACs Constitute an Expropriation under International Law?

Marieclaire Colaiacomo


In February 2012, Eurozone Member States signed a modified version of the Treaty Establishing the European Stability Mechanism (ESM).  This convention provides, inter alia, for the mandatory inclusion of standardised and identical CACs in all new Eurozone sovereign bonds from 1 January 2013. A sub-committee of the Economic and Financial Committee on EU Sovereign Debt Markets developed and published the terms of mandatory CACs on 26 March 2012 (the “Model CAC”).  As a result, from 1 January 2013, Eurozone sovereign bond issuers will be obliged to include the Model CAC in bonds with a maturity greater than one year, irrespective of their governing law. The Model CAC will apply to both international and domestic issue. CACs in future Eurozone sovereigns are beyond the will of the issuing State. Can this excuse countries from obligations arising from instruments such as the Convention of the Specialised Agencies of 1947?

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International Law Research  ISSN 1927-5234  (Print)  ISSN 1927-5242  (Online)  Email:

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