Imminent power centralization within the EU

Well it couldn't have happened to a nicer bureaucratic monster. As reported by Diario de Noticias; Brussels top aparatchiks aim at monetary centralization of all EU countries. Sovereignty and independence of each and every European nation is now firmly in the past. One does not need to look past the Sunday night 1 trillion dollar bailout to see why that is so. A model which was based on Federal Union of American States is now becoming a neo-USSR centrist model in which individual countries will have no saying in setting their monetary and fiscal requirements and policies. Furthermore; while both Angela Merkl and Nicolas Sarkozy downplay the significance of such a political [yes it is nothing but that] move, we here on ZeroHedge know better than to take their words at face value. Obviously nothing was solved by monetary infusion and the only thing keeping the EUR from not crashing towards parity with the USD are the markets, which suffer from a severe case of ADHD, which makes them look, for a prolonged period of time, at shiny stock gains and 0.2% GDP growths, and of course Uncle Ben's instant swap facilitiesTM. Some countries which have a leveraged position inside Krem... uhh Brussels will surely welcome such positioning and centralization of power, while the European periphery will suffer as it did many times in the past. Our take is that Brussels will demand currency pegs with other EU countries [as well with those who are in the process of entering the Union but have not yet finished their negotiations] in order to impose control even further. The main beneficiaries of such a move could be Great Britain, Germany and France; countries which could exploit their dominant position within the European parliament to further their goals disregarding the needs of other Union members, a behavior which would not only admit the multi-tier nature of the EU and different treatments for different countries, but also make ground for radical political ideas to enter mainstream politics and further poison a very much poisoned political environment. I am 100% sure nothing beneficial will come out of this in the longterm, but will surely make EU bureaucrats tap their backs in a congratulatory manner for the brilliant job they have done.

The eurozone countries will lose sovereignty over the preparation of their budgets, if approved a European Commission proposal which aims to strengthen economic cooperation in the EU. Brussels wants to create a mechanism for warning of macroeconomic imbalances and to align the budgetary policies of member states with the political objectives of the Union
The Commission's proposal is only the first step (be prepared for another long run) to combat the crisis of the euro.

If the European Council in June, to support this plan, will be institutionalized mechanism to stabilize the financial approved a week ago and the budgets for 2012 are already built (over 2011) in accordance with these rules. Brussels will have more powers in the supervision of macro-economic objectives.

The idea is to anticipate the presentation of the Stability and Growth Programme, under what the report calls "half European." Each PEC is analyzed more rigorously than hitherto. Only when approved or modified this program is that the country draws up the budget. Eurostat will also gain powers to audit the accounts of each country.
The excessive deficit procedures will be faster than the current document and prompts the need to prepare secondary legislation. And here comes one of the crucial points of the proposal will not only alert to the budget deficit, but also for the public debt.
For example, if a country has more than 60% of GDP in debt, will not suffice to meet the 3% deficit, but this "has to be consistent with the continued and substantial decline in public debt."

Basically, the increased coordination takes into account more indicators and the debt is emphasized, as was the case at the beginning of the Stability and Growth Pact governing the euro zone.
Nonetheless, the Commission only has powers to notice and recommendation. In the case of risk analysis for a poor country or denial of a stability program, sanctions shall be paid by the European Council, under rules not very clear in the document. "In case of obvious mismatches in budget plans for next year, will recommend a review of the plans," reads the proposal. "The Eurogroup will have a crucial role in the new system of enhanced coordination and, where appropriate, may seek a formal decision in accordance with the Treaty of Lisbon."

These powers are not very evident, and may be limited community funds or bonds, but the Council shall take decisions by qualified majority and has the means to compel a small country to amend its budget in this case be denied the services of committee.
In practice, the plan is tantamount to creating an embryonic European economic government, an idea that some countries have advocated since the single currency, but that never materialized due to opposition from a group of states led by Germany. The crisis of the euro has eliminated this opposition.

http://dn.sapo.pt/inicio/economia/interior.aspx?content_id=1568536

Comments

[Leo Kolivakis]

Any way you can increase the fonts in the quoted section?

thanks.

[Cheeky Bastard]

Yeah, sorry Leo; Diario is notorious for its anti-reader font size. I re-calibrated it; it should be OK now.

[Leo Kolivakis]

Sure is, thanks, very interesting. Germans are going to conquer all of Southern Europe.

[The Alarmist]

Anyone who has been to Mallorca knows the deed is already done. It is why it is jokingly referred to as the 17th Bundesländ.

[Cheeky Bastard]

Zee Germanz are coming. Again. Yeah pretty much you will see some ugly monster which will, over time, begin to take shape of post WWII Europe which was, as you know, parceled into "Zones of special interest". My take is; France gets to impose power over northwestern continental Europe, Spain,Portugal and Italy, Germany takes Mitteleuropa and the east. UK gets Ireland back. The rest are on their own, since EMU is smaller than EU; but there are always dangers of enforced currency pegs or multi-tier taxation mechanisms imposed on the countries which do not succumb. All in all, one ugly ass future. 

[anonnn]

Thanks your views. Probably you have already expanded their scope. I cannot dismiss Tolkien's...and one ring to rule them all.

 Any and every variety of bailout is certainly opportunity to control the supplicant nation's leaders...and it is desirable to conjoin several nations via establishing a central authority so that only the central persons need to be controlled. Brussellizing is an old strategem.

Control the leaders; let the leaders control the populace.

[Miles Kendig]

No shit pal.  Keep on smokin' 'em CB.

[velobabe]

cheeky, you obviously have a lot of time on your hands†

the charts and all.

babe, i'm speechless†

that is HARD, for someone like me.

your just busy, bussy, busyyy bbusy.

now, what do men do, when they are bored?

ahh, self pleasure?

or read charts?

[Cheeky Bastard]

Both. At the same time. One can not resist the yield curves when they yield curves are so .... curvy ...

Thank you for the comments. I really appreciate it. But its 4:30 am here, and there isnt much to be done at 4:30 am. Im turning into Howard Hughes with only difference being the internet.

[velobabe]

i don't understand this. you say it is 4:30am but your time stamp says 20:30. cause 20 is 8pm isn't it?

remember, numbers are challening for me. but why don't i get this?

[dumpster]

howard hughes

my what long fingernails you have   lol

[Maddeafandblind]

"Im turning into Howard Hughes with only difference being the internet."

and the money, presumably.

[Cheeky Bastard]

i have more than enough.

im not Oprah rich, but i have more than i can spend.

[Maddeafandblind]

well send me the excess then.