ktlight
24th August 2011, 10:02
FYI:
Germany demands an ‘extensive surrender of national fiscal sovereignty’ to bailout highly indebted European nations – a demand which could soon be forced upon the US.
Last week the governments of Germany and France called for a single government to rule over Europe to deal with the European debt crisis.
Today, Germany moves the game plan forward by issuing a statement outlining their demands for indebted European nation’s to secure banker bailouts.
In a statement that is nothing short of a plan to roll out the Fourth Reich, Germany is demanding nation’s give an “extensive surrender of national fiscal sovereignty to secure banker bailouts.
The recent resolutions transfer sizeable additional risks to the countries providing assistance and their taxpayers, and go a long way towards communitising risks caused by unsound public finances and misguided macroeconomic policies in individual euro-area countries. This weakens the foundations of monetary union, which is based on the principles of national fiscal responsibility and the disciplining effect of capital markets, without noticeably increasing the influence and control over individual national fiscal policies as a quid pro quo. Overall, there is a risk that the originally agreed institutional framework of the monetary union will increasingly become eroded. While fiscal policy will continue to be determined by democratically elected parliaments at national level, the resultant risks and burdens will increasingly be borne by the Community in general and the financially sound countries in particular, without this being offset by any concrete powers to intervene in the sovereignty of national fiscal policies. No comprehensive change in the European treaties is currently envisaged that would democratically empower a central entity to exert some control over national budgetary policies. This means there is a danger that the euro-area countries’ propensity to incur debt may increase even further, and the euro area’s single monetary policy will be increasingly susceptible to the temptation to adopt an accommodating stance. Unless and until a fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened.
source to read more
http://blog.alexanderhiggins.com/2011/08/22/germany-demands-extensive-surrender-national-fiscal-sovereignty-secure-bailouts-63051/
Germany demands an ‘extensive surrender of national fiscal sovereignty’ to bailout highly indebted European nations – a demand which could soon be forced upon the US.
Last week the governments of Germany and France called for a single government to rule over Europe to deal with the European debt crisis.
Today, Germany moves the game plan forward by issuing a statement outlining their demands for indebted European nation’s to secure banker bailouts.
In a statement that is nothing short of a plan to roll out the Fourth Reich, Germany is demanding nation’s give an “extensive surrender of national fiscal sovereignty to secure banker bailouts.
The recent resolutions transfer sizeable additional risks to the countries providing assistance and their taxpayers, and go a long way towards communitising risks caused by unsound public finances and misguided macroeconomic policies in individual euro-area countries. This weakens the foundations of monetary union, which is based on the principles of national fiscal responsibility and the disciplining effect of capital markets, without noticeably increasing the influence and control over individual national fiscal policies as a quid pro quo. Overall, there is a risk that the originally agreed institutional framework of the monetary union will increasingly become eroded. While fiscal policy will continue to be determined by democratically elected parliaments at national level, the resultant risks and burdens will increasingly be borne by the Community in general and the financially sound countries in particular, without this being offset by any concrete powers to intervene in the sovereignty of national fiscal policies. No comprehensive change in the European treaties is currently envisaged that would democratically empower a central entity to exert some control over national budgetary policies. This means there is a danger that the euro-area countries’ propensity to incur debt may increase even further, and the euro area’s single monetary policy will be increasingly susceptible to the temptation to adopt an accommodating stance. Unless and until a fundamental change of regime occurs involving an extensive surrender of national fiscal sovereignty, it is imperative that the no bail-out rule that is still enshrined in the treaties and the associated disciplining function of the capital markets be strengthened, and not fatally weakened.
source to read more
http://blog.alexanderhiggins.com/2011/08/22/germany-demands-extensive-surrender-national-fiscal-sovereignty-secure-bailouts-63051/