Guest Post: EU Finance Ministers Push Through ESM Treaty in Fishy Fly-by-Night Move

Tyler Durden's picture

Submitted by The Prudent Investor

EU Finance Ministers Push Through ESM Treaty in Fishy Fly-by-Night Move


Europe's most important treaty on the European Stability Mechanism (ESM), which will lead the EU into a financial dictatorship, has been pushed through by EU finance ministers late Monday evening.

But the latest version of the ESM cannot be found on English and German EU websites. A link on consilium EU only leads to a 'file not found' message and the German EU website "Europa von A - Z" does not mention the ESM at all. This reminds one of the secrecy around the Federal Reserve Act, that was pushed through in 1912. Is the EU Commission now playing the same fishy game 100 years later?

Media reports from last midnight only said that the ESM treaty was agreed on by EU finance ministers and mentioned January 30 as the date when the treaty will be officially signed.

Significant changes have been made, a few media reported.

The capital of the ESM will now be only €80 billion instead of the €700 billion proposed in the only available draft version from July 2011 (see treaty text below). The finance ministers also agreed to bring the ESM into existence one year earlier by July 2012, putting national governments under immense pressure to ratify the ESM treaty without sufficient public discussion.

German state TV ZDF reported shortly after Monday midnight that the fund shall have a financing volume of €500 billion, but this figure is a moving goal post. IMF head Christine Lagarde proposed a volume of €1 trillion whereas Italian prime minister Mario Monti and Austrian finance minister Maria 'Mizzi' Fekter said later that the ESM should be upped to €750 billion. Such important changes cannot be found in publicly released EU documents anywhere on the web. The ESM will be the successor of the European Financial Stability Fund (EFSF) which lost its AAA rating a few days ago.

It does not exactly reassure Eurozone citizens when European leaders throw around figures between €500 million and €1 Trillion, proving they have no other clue than to fight debt with more debt if the fund is going to be leveraged inthe proposed style.

It all the more troubling that last night's agreement changes have not been communicated by the EU at all. It reminds one of the ACTA act that was signed in a non-public meeting of the Agriculture and Fishing Commission and is designed to destroy the freedom on the internet. As a side note: Anonymous brought down the websites of three Austrian ministries and the Austrian chancellery on Monday evening, protesting that Austria will be one of the first countries to ratify this attack on internet freedom. This was not reported by Austrian state broadcaster ORF.
I have published my objections to the ESM in this post from last December. Nothing has changed since except for the reduction of the proposed capital and the date the treaty shall go into effect. The ESM and its staff will be completely immune and cannot be sued, but can sue itself. This stinks.

Here is a video describing the democratic shortfalls of the ESM treaty in German with English subtitles.



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Bazinga's picture

Better to ask forgiveness than permission. But then the EU finance ministers NEVER ask for either...

GetZeeGold's picture



Hide and seek....bitchez!

economics1996's picture

Printing money does not solve problems, it just rips off people and makes them less inclined to work for a living.

fonzannoon's picture

I think it makes people work more and harder because from where I am standing people don't recieve the printed money, just the inflation.

Silver Alert's picture

I haven't received a raise in a couple of years now. I can't wait for hyperinflation to start adding zero's to my paycheck and getting me a raise every week if not daily or hourly.

DogSlime's picture

@Silver Alert - I can't wait for hyperinflation to start adding zero's to my paycheck


It won't, though.

Prices will skyrocket and your wages will stay the same.  You think these bastards will allow you to have the same quality of life?

The elite must be supported.  There's less to go round now.  If they are to become richer, you must become poorer.

Price inflation will vastly outstrip wage inflation - they'll see to that.

Chief KnocAHoma's picture

Same game of layering they played on Jekyll Island about 100 years ago. Better  learn to live within their system and look for opportunities as they waste time and energy fighting them.

We are now able to force a modecum of transparency, but this system will be here for the balance of my life and most likely the balance of my childrens life. Maybe my grands, when they get here, will be live under different rules. Hopefully better ones.

Remeber Christ threw the money changers out of the Temple as was hanging on a cross within three days.

economics1996's picture

Look on the bright side, there are a lot of players in the EU and the odds of a few breaking away are high.

El Oregonian's picture

"Remeber Christ threw the money changers out of the Temple as was hanging on a cross within three days."

Lucky for us, eh?

RiverRoad's picture

He also said, "It's easier for a camel to go through the eye of a needle than for a rich man to enter the gates of heaven."  Could be Romney's well as theirs.

Chief KnocAHoma's picture

Because the rich men of His time were charging interest, and making money changing money as parasites on the productive class... wait...

Maybe He was really on to something.


slaughterer's picture

Being an EU finance minister means never having to say you are sorry. 

FreeSlave's picture

This is a creation of a "Europen FED", the one that most of us want to abolish here in US... I cant believe Europeans will allow this BS to happen…


cossack55's picture

To rhyme historically, they should have done it on Christmas Eve. 

GetZeeGold's picture



Obummers recess appointment would have clinched it.

PaperBear's picture

Does it look like the formerly secret cabal trying to rob all of us is crubmling as the following post suggests ?

Benjamin Fulford 1-23-12…”Secret government regime change in Asia nears completion, Satanic cabal in West crumbling”
GeneMarchbanks's picture

'It does not exactly reassure Eurozone citizens when European leaders throw around figures between €500 million and €1 Trillion, proving they have no other clue than to fight debt with more debt if the fund is going to be leveraged inthe proposed style.'

That's only to appease the banking cartel. Europeons stopped paying attention long ago...

Manthong's picture

Isn't that special.

Looks like they modeled it after our Eeconomic Stabilization Fund (ESF).


GetZeeGold's picture



It's as good as a Presidential pardon in the pocket of a Mafia top boss......screw me.

Captain Kink's picture

Will the European Sheeple do anything about it?  No.  Will the states of the periphery utter a word?  No.  Will the markets react? (probably higher!) They can do whatever they want! I am just fuking disgusted anymore.

I am giving up on what should happen and focusing on what will happen.  Madness.

YHC-FTSE's picture

+1 Most of us have posted that sentiment more than once on ZH! 


The only thing to do when faced with a Ponzi scheme of this size, depth, and hell, all-encompassing ludicrousness, is opt out or play the game. a) Land, agriculture, self-sufficiency b) Play the Ponzi for what it is, get in there early, and be the first to come out with profit. I dare say many on ZH are doing a bit of both. When the whole world is dining with captain Insano and his minions on the bailout printer, you've got to feign insanity yourself to avoid being ripped apart by the zombies. 

chinaguy's picture

Hey Captain,

That's a good first step, don't get is what is can't prepare, or invest properly until you can see things you do...get to work.

Captain Kink's picture

I have the preparations in place, PMs, getaway shack and some land in the country.  Still need G&A.  Have been playing the markets to protect capital and got very long equities around the new year, along with more paper PMs.  need to convert those to more physical.  They will print and spend to infinity, and nobody cares.  When will people wake up to this?  All the european news is exhasperating, but we are in the exact same boat here in the US.     

Can they really get away with it?  Will they just destroy the value of savings and purchasing power and the masses will not react?  There may not be a day of reckoning out there.  The math favors a reckoning, but with the apathy and the seemingly unlimited gall of TPTB, I am no longer certain...

GerritB's picture

I thought the EU was democratic, think again!!

Mae Kadoodie's picture

There's something happening here, what it is aint exactly clear.

Sanksion's picture

There's a man with a gun over there ...

GetZeeGold's picture



I think it's time we stop now......whats that sound? Everybody look what's going down.

cossack55's picture

tellin' me that i've got to beware.

francis_sawyer's picture

If somebody starts in with KUMBAYA... I'm outta here...

slewie the pi-rat's picture

paranoia strikes deep

step outa line, theMan come, and take you awaaaaaayyyy

francis_sawyer's picture

OK... WTF... If you can't beat em, join em...

What a field day for the heat...

Capitalist10's picture

Like Obamacare, they had to pass it before you could find out what was in it.

lolmao500's picture

Moving volume... what a bunch of crap. It won't be a moving volume, it'll be ``to begin``.

Wakanda's picture

Rushed legislation at night with no text.

That's scary shit.

Somebody is very, very afraid.  I can smell their fear and hear the munching worms tunneling into their brains.

disabledvet's picture

From backdoor bailout to Midnight Madness. Shutting down the Internet? In Europe?! Priceless indeed!


so much for disclosure. I'm sure the the banking cabal feel that this is not prudent information for the proles to posess. "Just relax we've got it all under control, go back to sleep children".

westerman's picture

I have been demonstrating a fair amount this past year. This year I am taking to the streets hardcore. This is a dictatorship. This is no different from the Soviet union. There is no point in voting anymore. My vote is whatever I can throw at the police.

HD's picture

May I ask your country?

Manthong's picture

Looks like Anonymous has got a few important new rush projects in the cue. 

HD's picture

Never ends. Our freedom and safety are entirely contingent on the whims of those with extrodinary wealth and power.

LouisDega's picture

I heard the garbage men and the school bus outside this morning. Its all good. Now, Take a deep breath, Collect your thoughts and go home.... Just go home.

roy10's picture

I have been saying this for a while. The ESM is DOA. It will soon be put to a quiet death.

The markets are telling the Europeans that they can let Greece and Portugal default without major consequences. Greece has already been told that there will be no more bailouts and I believe Portugal will get a similar message soon.

The ECB is firewalling Italy/Spain, which make the ESM completely obsolete.

GeneMarchbanks's picture

You can't play con games when none of the players have any confidence. The 'markets' only exist in your head and anything their voice is telling you shouldn't be trusted. Greek + Portuguese default would have unintended consequences as you well know so there can't be another solution where everybody gets "theirs". Major creditor pain is unavoidable.

roy10's picture

Italian bonds headed towards 5% beg to differ. Spanish bonds headed under 5% also differ.

Markets seem to have all the confidence in the world in Draghi. IMO, the Greek/Portuguese defaults are a done deal and this is just about the only place in the world where anybody cares. Markets have moved on.

GeneMarchbanks's picture

The dispute isn't over defaults which have already happened but over the consequences of those defaults which haven't been quite yet processed by the 'markets'. I admit the line sounds terrific --reassuring-- but ultimately means absolutely dick over the medium term.

roy10's picture

Sovereign defaults have been happening for centuries. Since Italy/Spain have clearly decoupled from Greece/Portugal (with the help of Draghi), any other consequences are minor.

We are moving to a new stage.