Monday, 21 November 2011

Euro-crisis Britons fear Berlin's European super-state

A working paper of the Federal Government electrified Britain. This
will allow the orderly Berlin State Insolvency and create a European
Monetary Fund.

It's not often that British media dig up papers of the Federal
Government. Whoever leaked this document to them, knowing how the
British would react.

On Friday in Berlin: Chancellor Angela Merkel and British Prime
Minister David Cameron

They were once so electrifying that it writing immediately translated
into English and presented to the Internet. Germany wants to create a
"European superstate", writes the "Telegraph".

"It confirms fears that lead the German plans in the euro crisis into
a European super-state could, in the financial and tax policies are
made in Brussels." The British "Financial Times" speaks of a
"significant amount of detail, such as Berlin wants the government to
change the economic Euro-zone ".

Plans for the fiscal structure of a new Europe

The six-page paper titled "The Future of EU integration required
political progress towards creating a stable union." And it is indeed
a paper from the federal government, but it is not from Chancellor
Angela Merkel, but by their Foreign Minister Guido Westerwelle. The
FDP politician sent it on 20 October 2011 to members of the Union
Group, where it under went unnoticed.

This paper provides the attentive reader something concrete, but it
plans for the fiscal structure of a new Europe.

Reading through it quickly becomes apparent is that the existing
authority of the EFSF and planned for the coming year European
Stability Mechanism (ESM) for a long time could not be the last word.

From a volume of 700 billion € ESM-equipped, the Bundestag will
decide the next spring, as soon Westerwelle wants a European Monetary
Fund (EMF) to make, which can directly intervene in the budgetary
powers of the States €.

"The instruments of the ESM is not sufficient," it says in his paper.
"It also requires real rights of intervention in the national budget
rights of those Euro-Member States which are under an ESM program and
thus potentially jeopardizing the stability of the euro zone."

And then follows the sentence to see where the British, but also a
departure of U.S. observers present bailout policy: "The ESM must also
be able to carry out an orderly insolvency of a permanently insolvent
€ state. The ESM would these two steps into a real "EWF".

Orderly bankruptcy

There it is again, the orderly insolvency. This time it does not come
as a side note, therefore, the Minister of Economy, but in the
government strategy paper is embedded.

Further writes Westerwelle: 'For Member States which are located
within one-ESM program and found to comply with, is that debt
sustainability is not given, the possibility of interventions in the
budget is not sufficient. Therefore, it must also give the possibility
of an orderly bankruptcy States to reduce the burden on taxpayers (the
other euro area member states) and also to create the possibility for
a restart of the affected country. "

Also planned is even a "stability Commissioner". This position should
be equipped with large powers. Are provided - such as the European
Monetary Fund - "direct rights of intervention in national households
of € states."

A change of course?

And the private creditors, the federal government take the duty. "The
present ESM contract in the proposed permit participation by private
creditors so-called" collective action clauses "(CACs) is not
sufficient," writes the secretary of state.

All this is not without a modification of the Basic Law and the
European treaties possible. Amending European treaties to a convention
to be convened, suggests Westerwelle.

"Such a convention should quickly submit proposals within its tight
fiscal policy mandate, which are then decided by an intergovernmental
conference," the foreign minister. In just a few years the changes
could be implemented.

Does this letter but, as under the British make a course change to,
away from the bail-out policy for the orderly insolvency?

It's hard to say. What is written in it is, first of all the price of
the foreign minister. In other key ministries such as Finance Minister
Wolfgang Schaeuble, it seems to play no role. From there was "World
Online" the terse reply, the paper was not known.

No comments:

Post a Comment