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Those Necessary Reforms

by afew Thu Dec 6th, 2012 at 09:40:41 AM EST

This didn't get much play, as far as I've been able to see:

EUobserver.com / Institutional Affairs / EU leaders to consider eurozone budget, reform 'contracts'

BRUSSELS - EU leaders meeting later this month in Brussels will try to iron out disagreements on a new eurozone banking supervisor and consider further steps to deepen the economic union, such as a eurozone budget and binding "contracts" on reforms.

According to draft guidelines discussed on Wednesday (3 October) by EU ambassadors for the summit conclusions on 18-19 October, member states should consider "individual contractual arrangements with the European level on the reforms they commit to undertake and their implementation."

The idea, although controversial, is not new. Germany has long fought to have more supervision of national decisions on budgets, labour market reforms, pension schemes or retirement age in member states.

It sees this as a quid pro quo for its approval of the Greek, Portuguese, Irish and now Spanish bailouts, the setting up of a permanent bailout fund, and the tacit endorsement of a bond-buying scheme by the European Central Bank.

So, after the forced acceptance of the "golden rule", it'll be forced acceptance of labour market and pension reforms. These, as we've said here for years now, aim at one thing: reducing wages. And Germany wants this as a reward for being nice.

In other news, Germany is still standing in the way of a viable banking union for the Eurozone.


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Anyone know how much more of this there is to come?
by afew (afew(a in a circle)eurotrib_dot_com) on Thu Dec 6th, 2012 at 09:42:31 AM EST
Unless there's a sudden change of direction, this is all going to spiral out of control and bring the whole Union crashing down.

Germany has long fought to have more supervision of [non-German] national decisions on budgets, labour market reforms, pension schemes or retirement age in member states.

Fixed it. Meanwhile, most German banks shouldn't be subject to outside supervision.

And did we mention this?


Deutsche Bank failed to recognise up to $12bn of paper losses during the financial crisis, helping the bank avoid a government bail-out, three former bank employees have alleged in complaints to US regulators.(FT.com

And let's not forget:

Opposition lawmakers and German media have accused Ms. Merkel of hosting a private party at taxpayer expense for the birthday of Mr. Ackermann, an influential but controversial figure in Germany.

(WSJ)

by Colman (colman at eurotrib.com) on Thu Dec 6th, 2012 at 09:52:16 AM EST
Eurointelligence, today's news briefing by e-mail:

In its penultimate edition before its closure, FTD has an interview with Olli Rehn, who has become the latest official to pronounce the crisis to be over. The latest acute phase of the crisis was in June, he said, and now we have reversed the trend. The reason he gives is the austerity policy, which will have led to a reduction in the eurozone-wide deficit from 3% this year to 2.5% in 2013. He said the Commission would from now onwards no longer look just at nominal targets, but increasingly at structural targets - and be willing to accept a trade-off between structural reforms and deficit reduction.

Wanna trade? Keep up the defence spending but bring wages down. Ask Olli Rehn how to do it, he'll explain.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Dec 6th, 2012 at 10:28:11 AM EST
Presseurop: Tightening the purse strings (6 December 2012)
"The most savage budget of the economic downturn" says the Irish Independent, assessing the government's new austerity budget, which aims to save €3.5bn. The savings will come through a mix of higher taxes on property, income and alcohol, plus cuts in benefits, including those for parents, pensioners and the unemployed. Ireland must make savings in order to continue to receive EU and IMF bailouts. Seizing on a comment by Ireland's deputy prime minister, Eamon Gilmore, who pledged the budget would be fair and "those who had the most would pay the most", the daily's opinion writer, Johnny Fallon, brands the fairness test a failure ...


I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Thu Dec 6th, 2012 at 10:30:34 AM EST
Here's some EU Council policy awesomeness: Stages towards a genuine EMU [PDF].

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Thu Dec 6th, 2012 at 11:11:18 AM EST
WTF?
by Colman (colman at eurotrib.com) on Thu Dec 6th, 2012 at 11:33:13 AM EST
[ Parent ]
Herman's aides have mastered the art of project flow diagrams, clearly.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Thu Dec 6th, 2012 at 01:15:57 PM EST
[ Parent ]
Is that what Herman doddles when he's not scribbling haikus?
by afew (afew(a in a circle)eurotrib_dot_com) on Thu Dec 6th, 2012 at 12:13:51 PM EST
[ Parent ]
Yes, doddles, but doodles.
by afew (afew(a in a circle)eurotrib_dot_com) on Thu Dec 6th, 2012 at 12:14:09 PM EST
[ Parent ]
Oodles of doodles
exhausting the brainpower
of Herman&co.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Thu Dec 6th, 2012 at 01:14:40 PM EST
[ Parent ]
EU Observer: National parliaments 'not best' for EU's interests
The paper - put together by EU council president Herman Van Rompuy and published Thursday (6 December) - lays out a loose time framework for achieving "genuine economic and monetary union."

...

It points out that while state budgets are at the "heart" of parliamentary democracies, national assemblies "are not in the best position" to take the "common interest" of the union into account.

...

It will be the European Parliament that "first and foremost" will be given more oversight powers as more economic and monetary powers are given to the EU level.



I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Thu Dec 6th, 2012 at 11:58:30 AM EST
EUobserver.com / Political Affairs / National parliaments 'not best' for EU's interests

EU officials believe that all euro states should eventually be obliged to sign up to reform "contracts" as a way of ensuring that unpopular structural changes are made - building still further on the already powerful budgetary oversight powers that the European Commission has been given since the onset of the financial crisis.

These contracts would be the result of "intense dialogue between each member state and EU institutions" and would run to several year - although they could be changed if the government changed.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Dec 6th, 2012 at 12:19:18 PM EST
[ Parent ]
They could just copy the USSR Supreme Soviet. What next, citizen rights are not good for EU?

After the Lithuanian elections in October, the president Grybauskaite is making obstacles for Darbo Partija suggested ministers. The government is going to be confirmed without 2 ministers still.

by das monde on Fri Dec 7th, 2012 at 09:14:23 AM EST
[ Parent ]


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