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But if you are willing to fire central bankers, why exactly do you need to break up the eurozone?

Because sacking the board of the ECB is not legal under federal law, and changing the federal law in question requires 50 % +1 of the vote in even the most backwards, recalcitrant member state.

Whereas firing the national central bankers after withdrawing from the Eurozone would require only 50 % +1 of the vote in any state which wishes to adopt a sanity-based policy.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Aug 31st, 2012 at 10:19:22 AM EST
[ Parent ]
I'm not sure that's the case, though. The appropriate articles of the EU treaties apply to all EU member states as EU member states, not to Eurozone member states.

Which is why the EU could complain about Hungary infringing on Central Bank independence last year.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Aug 31st, 2012 at 10:21:46 AM EST
[ Parent ]


Friends come and go. Enemies accumulate.
by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Aug 31st, 2012 at 10:29:10 AM EST
[ Parent ]
But there is another option then sacking the board. The Governing Council could issue new instructions and see what happens. To do that 50 % +1 of the vote is needed to replace CB managers in six to twelve member states, since the six members of the executive board also are members of the Governing Council.

Starting that and preparing for a withdrawal can be done at the same time, since grabbing control over the central bank is important in both cases.

And as usual I suggest firing the CB boss for taking part in a conspiracy to subvert the EU treaties, which probably constitutes treason under national law. Let the CB boss appeal that to the Court.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Fri Aug 31st, 2012 at 12:51:28 PM EST
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