I quote from the Irish Times who report on Herman Van Rompuy’s attempts to
save the Euro at all costs even if it fucks up a whole continent for a generation find a way forward in the debt crisis facing the Eurozone.
“The operation of the Excessive Deficit Procedure is set out in article 126 of the Treaty of the Functioning of the EU, which gives effect to the measures set out in the Lisbon Treaty. The article runs to 14 paragraphs but some of the most crucial provisions governing the procedure are contained in a protocol annexed to the treaty.
The relevant texts of paragraph 14 of article 126 and protocol 12, article 3, would appear to offer a possible route to treaty change without a referendum.”
Aha! good old article 126 paragraph 14 protocol 12 article 3!
M. Van Rompuy also thinks that the European Stability Mechanism, as the permanent successor to the existing European Financial Stability Facility will be known, should be adjusted so that it can recapitalize banks directly—instead of lending only to governments (which they may then onlend to banks.)
For Fox’s SAKE!
Albert Einstein’s definition of insanity springs to mind here:
“Doing the same thing over and over again and expecting different results.”
Or if you prefer former UK chancellor Denis Healy, who knew a thing or two about debt:
“Let me tell you about holes. When you’re in one, stop digging”
Of course our old friends Standard and Poor’s have pitched up to
point out that the plan to save the Euro has hee-haw chance of success warn that ALL the Eurozone countries risk their credit ratings being downgraded.
Surely the wisest thing would be to allow the debt ridden countries to default and return to their own currencies in the meantime. Then the financially stable countries could formulate a plan to restructure the Eurozone (perhaps drawing up criteria for future fiscal union) and the EU itself – not under duress but in the clear light of day with cool heads.
It’s clearly not going to happen.
Instead it’s insanity, spades and shovels.
Filed under: european union | Tagged: euro, herman van rompuy, sovereign debt crisis, sovereign default | Leave a comment »