Authors: Carlos Gómez-Jara
The lack of a strong law enforcement authority in the EU with competence in criminal matter that monitors how these funds are applied can be considered one of the main reasons behind the disastrous spending of EU member states. Therefore, to the same extent that US bailout funds for ailing US companies were closely monitored by the Department of Justice there is a real need for similar mechanisms in the EU. This paper contends that EU funds are to be treated as federal funds, and the mismanagement of those has to be prosecuted and punished by the EU. Many studies have shown the relationship between law enforcement capacity and investors confidence. If the EU is able to provide a uniform system of enforcement at the EU level (not national level) in matters concerning criminal misconduct affecting EU financial interests, investors will more likely regain the confidence lost in European sovereign debt.
Keywords: European criminal law, Sovereign Debt Crisis, Federal System, Law Enforcement, Law & Finance, Investors Confidence