Tuesday, June 26, 2012

Towards a genuine Economic and Monetary Union...

That is the optimistic title of the report to be presented at this week's EU summit. You can find the full report here.

The report was compiled by the President of the Council Herman Van Rompuy with the aid of the Commission to lay some ground work for the eventual move towards a fiscal and banking union in the eurozone. Although it is clearly in its very early stages being only seven pages, the report gives a flavour of what's to come - importantly, though, the Commission has said this morning that the next report on the issue will be provided in December, so anyone expecting progress on this issue within weeks and months was sorely mistaken.

We'll update this blog with our thoughts and analysis as we delve deeper into the report.

UPDATE 11:00

The final version of the report is now available on the European Council website (see here).


Average Englishman said...

First create chaos and then offer your own undemocratic solution as the only way of relieving that chaos. Less freedom and sovereignty but no more crisis (for the moment). All straight out of the Lenin book of pleb control.

The only problem is that the people of Europe have mostly woken up (at last) to what is going on and will not accept it; the Germans will not write blank cheques and the others will not have the Bundesbank or Van Rompuy telling them what to do.

I don't expect any sense from Van Rompuy but when will our own beloved politicians wake up and start working on a solution that accepts the basic realities of the situation?

Idris Francis said...

It was as long ago as 1998 that I was told that the EU elite knew perfectly well that the euro was bound to cause a serious crisis and that they went ahead with the intention of using it to grab yet more power.

No one prepared to wreak such havoc to further their own ends should be free to walk the streets let alone to hold power.

Anonymous said...

"The only problem is that the people of Europe have mostly woken up (at last) to what is going on and will not accept it:"

The problem is, what the people want is irrelevant to what the unelected banking cartel in power in Brussels (the EUSSR and the Euro Council) will actually do -- and have the power to do.

My guess is that a violent uprising that removes forever the unelected and self--appointed elite will be the only sustainable solution to this problem.

Rik said...

@Idris Francis
Hard to believe that this was made on purpose. They got in a situation where there are really huge downside risks for them.
This is simply an existential crisis for the EZ (and even possibly the EU). If this goes wrong they can be out of a job (and a pension).

It is simply bad management and if problems were expected certainly not on this scale, nowhere near.
First time the EU moved from supervision, grand design plans into an area were daily management might be required and they completely failed. Like the EU/EZ is completely failing at this moment in solving it.

christina Speight said...

They have absolutely no sense of guilt these EU-Politicos. They don't realise that they've put a large section of the population they are supposed to represent into unemployment, poverty and despair. And they then have the effrontery to claim that because they have been in charge [while this catastrophe happened] they know how to fix it by doing even more of it.

The saving grace in all this is that this lunatic dream cannot happen quickly and that by the time it does it will all be over and we'll all be in the soup together but not part of the defunct EU.

{Anyway, there's unanimity here - THEY'RE MAD}

Patrick Barron said...

All the above very well said. The EU has morphed from a mini United Nations of Europe for discussion and coordination BY SOVEREIGN GOVERNMENTS to a socialist bloc. It will go the way of all socialist blocs. The only question is how much damage will be done before it dies a much deserved death.