'States Must Sacrifice Sovereignty to Save Euro'

Der Spiegel ^ | 06/27/2012 | David Crossland

[Olog-hai]

Europe's leaders convening in Brussels on Thursday for an European Union summit are under intense pressure to come up with a new plan to save the euro, but they seem as divided as ever.

Chancellor Angela Merkel used uncommonly stark language on Tuesday when she rejected the idea for common euro bonds by saying Europe would not share total debt liability "as long as I live."

But German media commentators have drawn some comfort from a blueprint for a radical revamp of the eurozone's architecture presented this week by the "gang of four" European presidents: European Council President Herman Van Rompuy, European Commission President Jose Manuel Barroso, Euro Group President Jean-Claude Juncker and European Central Bank President Mario Draghi.

The ideas would entail a dramatic loss of national sovereignty through the establishment of a central authority with power to demand changes in individual members' national budgets, as well as a "medium term" move towards euro bonds, as well as a banking union with a single authority that would insure banking deposits and have the power to shut or recapitalize banks directly, with help from Europe's permanent bailout fund, the European Stability Mechanism. …

German commentators say EU leaders will have to grasp the nettle and agree to at least the basic framework of a complete overhaul of the euro system if they want to save the single currency. Many agree with Merkel that euro bonds are the wrong answer, and that American calls for Germany to throw money at the problem won't solve the crisis. All countries will have to accept a loss of sovereignty to make the currency work in the long term—and in the medium term, says one commentator, the European Central Bank should take a bigger role in tackling the crisis. …

[Olog-hai]

When the Federal Reserve was created, the US dollar never stopped losing value. Since that time, it has lost 95 percent of same. But when you are after power (as the creators of the Fed were), things get a little blinded and the long term is not considered. And this is indeed a power play . . .

[txrefugee]

Angela Merkel in American translation: “Euro bonds will happen over my dead body.”

And our pathetic media is spinning this as a “maybe” !

[Lurker]

Europe will erupt into war before this happens.

[Olog-hai]

Not likely. They’ve successfully deluded a large chunk of their populations. Many even think of the EU as being more free than the US. They’re pretty much hooked on EuroSoc, and are really brainwashed by the leftist doctrines. The governments are quite compliant . . .

[freedumb2003]

>>Europe will erupt into war before this happens.<<

With what? The UK is the only country with a standing army worth a damn (the rest rely on the USA) and they aren’t part of the Euro.

[Old Retired Army Guy]

This plan is dead on arrival, but nobody wants to admit it YET!

[agere_contra]

Well frack, I was just talking on another thread about an attempt to create a supranational European governance over the next two days.

And here it is. This is the Raft of the Medusa.

[sunmars]

why bother fighting WW2 if they are gonna hand it over to the germans now because that is what this is.

[BfloGuy]

And this is indeed a power play . . .

Yes, it certainly is. Because the loss of national sovereignty is not required to save the Euro. If individual governments would balance their budgets (as originally "required,") the common currency would work very well.

[Olog-hai]

No, that would still not work. The interest rate structure is out of whack with all the member states and holding down national debt to 3 percent of GDP by itself would not allow the less-industrialized countries to catch up to the more-industrialized ones (and there is still some serious mendacity going on in the industrialized ones too as far as their debt goes).

Besides, the euro was set up to create this financial crisis so that this power play could be put into play.

[wolfman23601]

Expect the first budget items the EU cuts not to be retirement age austerity or any social programs, but the military.

[agere_contra]

The Germans? This is a power-grab by the EU’s supranational masters: an unholy alliance of stateless front-men and banksters.

The only way that Barroso, Rumpoy etc can continue their lives of ease is if they stop anyone getting off the ‘Raft of the Medusa’ (this is a historically-charged analogy for the Euro).

Now that the markets are threatening to wash everyone off the raft: the only way to keep them together is if they are tied together.

It’s not going to work for very long - but it’s not going to be very pretty while it lasts.

[henkster]

“Europe will erupt into war before this happens.”

All the real men of Europe were killed off at the Somme, Verdun & Stalingrad. Today, except for the Germans, none of them are interested in working. An honest day’s work is a walk in the park compared to war. If they won’t work, what makes you think they will fight?

[Olog-hai]

They’ve been doing that for a while. I was reading the text of the Third Amendment to Ireland’s constitution (1972) and they were throwing away their sovereignty even way back then. I do wonder what people like Michael Collins would have had to say about that?—is that perhaps the real reason why he was killed . . . ?

For the record, Éamon de Valera was still Ireland’s president at the time (retired in 1973), so his signature sold Ireland’s sovereignty away. For a man who fought for Ireland’s “freedom”, why did it suddenly change to exchanging one empire for another? and one where there was no direct representation (at least under the British Empire’s constitutional monarchy, Irish Members of Parliament had real legislative initiative).

[Olog-hai]

No, he’s got it right. The parliament in Berlin has power over the EU’s laws; no other national government does.

[agere_contra]

This is what that little rat Rumpoy has to say about the democratic process in the Eurozone.

4. Strengthening democratic legitimacy and accountability

Decisions on national budgets are at the heart of Europe's parliamentary democracies. Moving towards more integrated fiscal and economic decision-making between countries will therefore require strong mechanisms for legitimate and accountable joint decisionmaking. Building public support for European-wide decisions with a far-reaching impact on the everyday lives of citizens is essential.

So many weasel words. They will end up using the 'Community Method' - which is code for 'Rumpoy and Barroso stitch everything up between them'.

[Olog-hai]

They’ve been using language like that for decades. The Treaty of Lisbon and the Charter of Fundamental Rights are worse; the latter reads like the “fundamental rights and duties of citizens” of the USSR’s constitution, i.e. in part.

[fluorescence]

Weasel words, yes, but the meaning is right there. Decisions on national budgets will become the purview of Europe's super-national institutions; national parliamentary democracies will be responsible for building public support for the decrees from Brussels.

[tbw2]

European Union, jokingly referred to as “Greater Germany and France”, becomes “Greater Germany because it controls the purse strings”.

[alarm rider]

I agree. What people do not see is the opportunity for a “strong man” to arise. The next European “civil war” is always going to happen. The cause this time remains to be seen, but with current troubles, this may be the matchlight.