TY - JOUR
T1 - How to deal with the collapse of a banking system the Icelandic way
T2 - Restrictions of property rights in the interest of economic policy and government forbearance
AU - Solnes, Valgerdur
PY - 2016/7
Y1 - 2016/7
N2 - In the fall of 2008, a crisis materialized in the global financial markets, creating the imminent risk of collapse in Icelandic's largest financial institutions and the banking system as a whole. The perilous situation originated in similar conditions that formed overseas in the US and around the globe. The consequences are well known. The Icelandic Government resorted to various unique and extensive measures to respond to the crisis. This Article sets forth a five prong test building on the method of the European Court of Human Rights, the leading European authority on the protection of human rights, in determining whether property restrictions withstand the protection of property by the European Convention on Human Rights. This Article argues that the five prong test is not only suitable for assessing restriction of property rights on the international platform, but also the national level. Lastly, this Article strives to attest how the criteria applied by the Icelandic Supreme Court in recent judgments pertaining to an assessment of the legality of property restrictions, brought on by economic policy responses installed post financial crisis, does in fact adhere to the universal five prong test. To this effect the Article provides a comprehensive review of the economic efforts by the Icelandic Government and the respective case law of the Icelandic Supreme Court, regarding the legality of measures in the light of the protection of property. This analysis portrays a way in which a state can respond to a collapse of a banking system. The Icelandic way is potentially instructive when facing parallel situations in other states, and will at a mininum provide guidance in the form of experience.
AB - In the fall of 2008, a crisis materialized in the global financial markets, creating the imminent risk of collapse in Icelandic's largest financial institutions and the banking system as a whole. The perilous situation originated in similar conditions that formed overseas in the US and around the globe. The consequences are well known. The Icelandic Government resorted to various unique and extensive measures to respond to the crisis. This Article sets forth a five prong test building on the method of the European Court of Human Rights, the leading European authority on the protection of human rights, in determining whether property restrictions withstand the protection of property by the European Convention on Human Rights. This Article argues that the five prong test is not only suitable for assessing restriction of property rights on the international platform, but also the national level. Lastly, this Article strives to attest how the criteria applied by the Icelandic Supreme Court in recent judgments pertaining to an assessment of the legality of property restrictions, brought on by economic policy responses installed post financial crisis, does in fact adhere to the universal five prong test. To this effect the Article provides a comprehensive review of the economic efforts by the Icelandic Government and the respective case law of the Icelandic Supreme Court, regarding the legality of measures in the light of the protection of property. This analysis portrays a way in which a state can respond to a collapse of a banking system. The Icelandic way is potentially instructive when facing parallel situations in other states, and will at a mininum provide guidance in the form of experience.
UR - https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=22+Colum.+J.+Eur.+L.+483&srctype=smi&srcid=3B15&key=a11bd924892ff763fe3f0005f5cd1bac
M3 - Journal article
SN - 1076-6715
VL - 22
SP - 483
EP - 528
JO - Columbia Journal of European Law
JF - Columbia Journal of European Law
IS - 3
ER -