Bankers, Economists: Mass Centralization At Heart Of Euro Bailout
Huge Euro rescue is latest step on the road toward a monolithic globalist federal union
Monday, May 10th, 2010
The unprecedented €750bn EU bailout represents part of an ongoing program of mass centralization of governance in Europe according to the world’s leading bankers and economists.
Under the headline “Towards a United States of Europe” the Financial Times quotes key players who conclude that the bailout is part of an overall consolidation in Europe and represents a giant step toward a fiscal union in the eurozone.
Morgan Stanley’s European Chief Economist, Elga Bartsch notes:
Like the ERM crisis in the early 1990s spurred on political initiatives to bring about the long-planned monetary union in Europe, it seems that the sovereign debt crisis could be acting as a catalyst for an ever closer union of European countries. The decisions taken this weekend first by European leaders and then by finance ministers mark a big leap towards a fiscal union in the euro area, we think.
Not only have countries agreed to stand in for each other in an unprecedented extent, they have also agreed to foregoing some of their fiscal sovereignty and submit to rigorous fiscal consolidation programmes should they require financial assistance.
In other words, European states are literally signing over their independence to a monolithic centralized system under the threat of economic obliteration.
Marco Annunziata, chief economist of Italian megabank UniCredit concurs with this analysis:
The new stabilization fund represents another step towards “passive” fiscal integration, that is member countries explicitly assuming joint responsibility for each other’s obligation. To avoid the risk of violating the no-bailout clause, this is done in the form of a pooling of resources to rescue member countries in stress and not formally shouldering their existing debt obligations; moreover, financial support would be extended only based on tough conditionality on adjustment measures. However, the substance is the same: member countries have to jointly put their resources at stake to support the weaker members.
Annunziata also states that the IMF’s contribution to the bailout fund indicates a “depressing confirmation that at this stage that the EU is unable to design and enforce conditionality on its own.”
“The true decisions needed for the longer-term survival of the Eurozone still need to be taken.” Annunziata adds, echoing German premier Angela Merkel’s call to “address the root of the problem”
“We have to fight the causes of the difficulties, so budget consolidation in all member states is increasingly important,” Merkel said. “The access to the guarantees … will be linked to countries presenting budget consolidation programs to the IMF and the EU, which will then be regularly inspected.”