European Union: Reuters and other news services reported on 18 November that the European Commission will present a study that proposes three options for debt issuance for the Eurozone. The study indicates the European Union intends to exploit the debt crisis to undermine sovereignty in debtor countries, such as the PIIGS – Portugal, Italy, Ireland, Greece and Spain.
• The first law would link the acquisition of emergency loans from current and future bailout funds to the acceptance of economic monitoring by the Commission, which would be more extensive than that for Portugal, Ireland or Greece. If a eurozone member accepts this enhanced surveillance, it could mean the Commission would have an almost permanent presence in the nation.
• The second law would allow the Commission to evaluate draft budgets, suggest changes or draft a new budget. The Commission could also debate the budgets in a national parliament. These changes would not require a change to the EU treaty, which already states that economic policy is a common concern.
• The third law stipulates that budgets must be drafted based on forecasts from independent institutions, such as the Commission or the European Central Bank, rather than government agencies. The Commission will also propose that fiscal rules be written into national laws, preferably a country’s constitution.
Comment: If the PIIGS accept these terms, they surrender national sovereignty. It is unlikely that the laws will be approved, but they make clear the intentions of the unelected Eurocrats to govern. Budgetary authority is government authority. The Eurocrats think they know better than the people of the PIIGS.
Phi Beta Iota: The only thing worse than democracy is everything else, and that everything else assuredly includes European technocrats who have deep conflicts of interest, deep gaps in their knowledge, deep gaps in their integrity, and zero appreciation for the realities that have led to this situation including deep corruption in both government and finance. In a democracy, if politics and intelligence keep their integrity, there is no conflict and good policy results from good intelligence. When either or both abandon their integrity, the people get screwed. The LAST thing any of the weaker countries should do is listen to dictats from external “authorities.” The re-nationalization of privatized public assets, and the criminal prosecution of all Goldman Sachs and other banking figures that lied to governments over the past decade, are two of the FIRST things each government should do.