"The EU would set up a European Systemic Risk Council for the bloc, headed up by the president of the ECB. But, largely due to pressure from the United Kingdom, the body would only be advisory. Final decisions on financial-sector rescues would rest with the national governments called on to fund them." (WSJ)
The European Systemic Risk Council.
At least this new body is only advisory. But the throwaway line later in the piece should make your hackles (or dorsal fins) rise.
"We've created a new EU institution from scratch. … We could have gone further, but I believe that it will widen [its powers] through experience and practice, the way it's always happened," said Mr. Sarkozy.
The French have always wanted this to be a regulatory unit with direct power over nation states. The way he sees it, it will be set up to sweep up those powers over time.
My worry is that, to make it work in a regulatory fashion, we would need to harmonise things like tax and ultimately the currency.
Full regulation by the EU, although sounding attractive in the light of recent events, will drive competion between countries' financial sectors (as well as other areas) out of the EU. Which may be the plan.
Another little snippet is that the Irish will be voting again on the Lisbon Treaty in October. They have been given assurances that their abortion laws and tax will not be touched. This is just a sop and lies. Once they are in the pressure will start and they will find themselves railroaded into compliance.
This will put pressure on other countries to re-vote and any who haven't will find they're told there is no reason to vote. Just sign up.
A 'NO' vote in the EU means 'Maybe, ask me next year', a 'yes' vote is absolute.
The EU was set up with a one speed full steam ahead accelerator, no reverse ear and no abort button.
Question, what control does the average European Joe have over any of this?
Originally posted 20/06/2009