“The euro is a protection shield against the crisis.”
—European Commission President, José Manuel Barroso, 5 February 2010
On Thursday and Friday EU leaders will meet to discuss the future of the Europe. While some compelling speculations would suggest it is merely the beginning of the end for the Eurozone, arguing that ultimately “the wealthy nations of Europe [will be] unwilling to pay for the poorer ones” it is also important to note the summit may play midwife to the birth of an abomination. It is, after all, forgivable to allow the rabble a place at the table if they pledge their financial subservience.
Dismantling the German Constitution (again)
On Tuesday the London Guardian obtained a shocking seven-page document drafted by the “gang of four” — a quartet of European presidents: Herman Van Rompuy of the European Council, Mario Draghi of the European Central Bank, José Manuel Barroso of the European commission, and Jean-Claude Juncker of the 17-country Eurogroup.
Within the seven pages there was not one mention of freedom, liberty or law, but no less than 25 times did it mention – “strength,” “strong,” and “stability.” It should be clear this federation is not meant to free the people of Europe, but to enslave it.
Ian Traynor writing for the Guardian calls it a:
“…Radical plan to turn the 17 countries of the eurozone into a full-fledged political federation within a decade in an attempt to placate the financial markets by demonstrating a political will to save the single currency in the medium-term.”
The plan quickly establishes a new European banking union, giving the European Central Bank (ECB) authority over EU banks, proposes common resolution funds for “winding up bad banks” funded by a banking levy to spare EU taxpayers and a common deposit guarantee for Europe’s savers. The EU’s new pemanent bailout fund, the European Stablility Mechanism (ESM), would provide a “fiscal backstop” for the proposed federation and recapitalization of troubled banks.
German Chancellor Angela Merkel on the eve of the summit echoed her fierce resistance to “mutualize” this liability across the Eurozone.
“Apart from the fact that instruments like eurobonds, eurobills, debt redemption schemes and much more are not compatible with the constitution in Germany, I consider them wrong and counterproductive.”
The question is then what conditions would need to arise that would force Merkel to undermine her constitution or change it. As Europe’s leading economy the Germans have a lot to gain were this political federation to come to fruition. Considering the rebuff is coming from a leader who backed bailouts for many nations in the first place it sounds as if Merkel is merely saving face, thereby avoiding a sticky political situation back in Berlin, but perhaps she’s just dutifully biding her time.
At the weekend Germany’s finance minister Wolfgang Scheauble proposed Germans should vote on a new constitution and argued it should be sooner rather than later. To be sure, the rest of Europe agrees with billionaire financier George Soros that action needs to be taken immediately to save the union. When Germany seizes the role it is destined to assume Soros has predicted “a German empire with the periphery as the hinterland” ahead. In order to do that, however, they'll need to abandon their constitution. The last time the Germans did so, it didn't work out that well.
Sweeping and Expansive Powers May Grow the Eurozone not Break it Up
While some are anticipating the European Union to crumble under its own weight, this author included, it may not happen now or in the near future if the central planners have their way. In fact the proposed European federation may even become larger as the “gang of four’s” draft proposes that it should extend beyond the Eurozone. Rather than spreading the wealth it seems all the One Europe crowd wants to spread the liabilities.
“An integrated financial framework should cover all EU member states, whilst allowing for specific differentiations between euro and non-euro area member states on certain parts of the new framework that are preponderantly linked to the functioning of the monetary union and the stability of the euro area rather than to the single market.”
The proposal further addresses Merkel’s mantra: “no liability without controls.” As financial, budgetary and economic frameworks come under the dominion of Brussels the powers of the EU are magnified enabling the central authority to dictate and enforce a “robust framework for budgetary discipline” subordinating national decision-making on a wide range of issues previously excluded from the EU’s purview. Changes in labor markets, taxes, budgetary allocations and civil services, will ultimately be approved by Brussels as well as control Military of the EU which eclipses in active military personnel even the United States.
Words Mean Nothing
For all of the posturing and nay saying it is prudent to remember the persistent flip flops of the European Union’s leadership. Here is a series of now ridiculous statements compiled from Open Europe by The Daily Capitalist:
“The Community shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project.”
—Article 104b, Maastricht Treaty, 1992.
“We have a Treaty under which there is no possibility of paying to bailout states in difficulty.”
—German Chancellor, Angela Merkel, 1 March 2010
“[Greek Prime Minister] Papandreou has said that he didn’t want one cent. The German government will not give one cent, anyway”.
—German Economy Minister, Rainer Brüderle, 5 March 2010
Who and what to believe at this point may be a futile exercise, but it is clear the European elite wish to keep markets as “stable” as possible and their dream alive. To address fundamental issues for the long term at the expense of a few years in agony is out of the question. Equally as abhorrent to them is abandoning their failed experiment in order to do so. In the new inquisition of Europe it is heresy to speak of small states – to govern locally not globally. The fact that Greece should be the first to possibly exit the euro is nothing short of poetic justice; Western civilization owes itself to Greek city states not grand unions.
Perhaps it is something more esoteric passed down from millennia of European struggle. If in fact this modern monstrosity is achieved, albeit guaranteed to fail, and a European Superstate is constructed. German, France, Spain, Italy and possibly England in their rotating roles as Presidents of the EU will experience a kaleidoscope of empire their predecessors could not achieve through centuries of military conquest. Empowering the European people is not discussed in these machinations of ancient pedigree.