The legal implications of the European monetary union under the U.S. and New York law. Economic Papers No. 126, January 1998

Abstract

From the Executive Summary. In May 1995 the European Commission’s "Green Paper on the practical arrangements for the introduction of the single european currency" predicted that under the laws of non-EU jurisdictions the proposed single currency would be recognized as the successor to existing EU national currencies at the fixed conversion rates at which the single currency will substitute EU national currencies.6 The Commission’s Green Paper thus concluded that under the laws of non-EU jurisdictions the continuity of monetary obligations and other terms of a contract such as interest rates and other ancillary obligations could be expected.7 This study will address the issues raised by the Commission’s Green Paper. Thus study reaches the following conclusions regarding the legal implications of EMU for transactions governed by the laws of U.S. jurisdictions, regardless of whether legislation ensuring the continuity of contracts is passed in particular American jurisdictions and regardless of whether such legislation applies prospectively or retroactively