Plus de bonnes poires en Allemagne | 28 comments (28 topical, editorial, 0 hidden)

Re: No longer being economically sovereign ... (4.00 / 2)

Demanding that neither the Eurozone nor the individual nations in the Eurozone take on the responsibility of the economic sovereign for maintaining economic stability is indeed a trick of the plutocrats.

And how about this?

Consolidated version of the Treaty on the Functioning of the European Union [PDF]

Article 123
(ex Article 101 TEC)
1. Overdraft facilities or any other type of credit facility with the European Central Bank or with
the central banks of the Member States (hereinafter referred to as `national central banks ') in favour of
Union institutions, bodies, offices or agencies, central governments, regional, local or other public
authorities, other bodies governed by public law, or public under takings of Member States shall be
prohibited, as shall the purchase directly from them by the European Central Bank or national central
banks of debt instruments.
2. Paragraph 1 shall not apply to publicly owned credit institutions which, in the context of the
supply of reserves by central banks, shall be given the same treatment by national central banks and
the European Central Bank as private credit institutions.

What kind of central bank is legally barred from assisting fiscal policy?

The brainless should not be in banking -- Willem Buiter

by Carrie (migeru at eurotrib dot com) on Tue Apr 13th, 2010 at 04:05:55 PM EST
[ Parent ]