The new euro area model collective action clause for sovereign debt

The EFC Sub-Committee on EU Sovereign Debt Markets has recently published an agreed form of model collective action clause (the new model CAC). It forms part of a series of policy measures announced by euro area finance ministers in November 2010, intended to safeguard financial stability in the euro area. Adoption of the new model CAC will be mandatory in all domestic and international euro area government debt securities, with maturity above one year, issued on or after 1 January 2013.[...]