On-going work on CACs 2012
Following up to the conclusions of the European Council of 24/25 March 2011, a standardized and identical collective action clause (CAC) [66 KB] , including supplemental provisions [52 KB] , has been developed and agreed by the Economic and Financial Committee (EFC) on 18November 2011.
In accordance with Paragraph 3 of Article 12 of the ESM Treaty, the model CAC will become mandatory in all new euro area government securities with maturity above one year issued on or after 1 January 2013, and not 1 July 2013, as previously contemplated.
Its introduction will not affect any euro area government securities issued prior to that date unless those securities include a collective action clause that allows for their modification on a cross-series basis on the terms contemplated in the model CAC. As a result and except as just noted, euro area government securities issued prior to 1 January 2013 will not be subject to modification as part of a cross-series modification pursuant to the model CAC.
The Economic and Financial Committee has agreed on a schedule for the ESDM to monitor Member States' progress in implementing the model CAC, with a view to its timely introduction in all euro area government securities issued after 31 December 2012.
The ESDM expects to publish a report on the implementation of the model CAC prior to January 2013.