Greece was the beta test. Now Germany, whose plan to enact a European fiscal pact in exchange for soaring Bundesbank and economic support of the PIIGS has so far delayed the inevitable, is seeking wider powers to "supervise" European budget compliance with the terms of Merkel and Schauble's fiscal pact. Spiegel writes that "Schäuble plans to propose creating independent panels of experts at both the national and EU level, who would monitor fiscal policies in the member states, the euro zone and the EU as a whole. They would be responsible for sounding a warning if they see governments' budgetary policies straying off course." Those in charge of the panels? Academics - the same people who are in charge of the Federal Reserve (with stunning success we forgot to mention). Because having a Ph.D. is sufficient and necessary to be a central planner. As for the role of the uber-commissioner? He would be able to implement EU regulations (proposed by Germany) "without the other commissioners or the Commission president having the right to object." And there goes sovereignty, without even one shot fired.
More from Spiegel [6]:
The panels, which would be composed mainly of academics, would also be charged with checking "the compatibility of national fiscal policies with European and national requirements" as well as the "implementation of national and European regulations," according to the Finance Ministry document. Those regulations would include the tougher EU stability pact, which was adopted at a summit in March 2011 [7], as well as the new fiscal pact, which 25 EU countries have agreed to introduce. [8]
In addition, Schäuble's ministry is also proposing that the role of the EU's economic and finance affairs commissioner, a position currently held by Finland's Olli Rehn, be strengthened in the future. According to the ministry document, the commissioner should be able to implement EU regulations "without the other commissioners or the Commission president having the right to object."
Translated - a German run continental dictatorial regime. We can't wait to see just which countries will follow in Greece's footsteps and promptly comply with this annexation, as ceding sovereignty in exchange for a few Deutsche Marks indicates just how bad things truly are at home.
Unfortunately for the Krugmans of the world, this means that reckless spending will also be at the behest of Germany, which at least superficially is all about austerity... For others at least.
Improving member states' budgetary discipline has been a recurring theme in Chancellor Merkel and Finance Minister Schäuble's efforts to fight the European debt crisis. Berlin put pressure on other countries to sign up to the fiscal pact, which will introduce tougher rules for budget offenders. The pact will oblige countries to incorporate a German-style "debt brake," which forces governments to more or less balance their budgets, into their national constitutions. The treaty now has to be approved by national parliaments, with Germany's Bundestag expected to vote on the issue in May.
As many have expected, Germany is well on its way to controlling Europe once again. But this time it will be benevolent. Because this time it's different. Naturally any alternatives to the proposed regime will immediately result in threts of the end of the world and other Mutual Assured Destruction caveats that we know so well from the Greek case study.