Monday, May 17, 2010

George Osborne at ECOFIN tomorrow

As the Euro plunges this morning on Far East markets, read here, Britain's new Chancellor of the Exchequer, George Osborne, is scheduled to attend his first ECOFIN meeting, (background notes here) which is likely to be critical for the economic future of the UK. I suggest the following three crucial stances must be adopted if the country is not to be sucked further down towards economic disaster. Firstly on the One Trillion US Dollar euro currency rescue package supposedly agreed on 9th May: Bruno Waterfield and Open Europe have effectively argued that use of Article 122 as legal justification is an outrage. Britain's refusal to join the EU over many years will provide ample proof in the minutes of past ECOFIN meetings to back-up the assertion that the reason for such abstention from the euro was the certainty of the currency's collapse in the absence of concurrent fiscal and monetary union. History proves no currency union can last without economic union, that raison d'ĂȘtre was the driving force behind the euro project, the federalists disingenuousness in arguing it as a circumstance outside their control is bare-faced cheek! This crisis was foreseeable, always predicted by this blogger and successive UK Governments and therefore quite clearly totally within the control of all involved. Article 122 may well apply to the economic consequences of the Icelandic volcano but little else in today's circumstances. Secondly on the task force on enhanced economic policy coordination in the euro area Given the need for a new IGC next month and the likely requirement for re-ratification of the Lisbon Treaty by the 27 national parliaments, not just the European Parliament would appear to be illegally constituted but all Lisbon mechanisms similarly so. Can it therefore be legally correct or indeed even proper for the EU Council President Van Rompuy to lead this task force from 21st May? Even were Lisbon properly in force should the EU Council President be involved in a project involving a mere 16 of the EU membership? As his appointment and that of Baroness Ashton depend upon a Treaty now requiring re-legalisation, they should both perhaps be sent home, without pay, while matters are resolved.... are there none in the EU able to see this should be a wonderful opportunity to scrap the Lisbon Treaty once and for all? Can any detect any benefits the Treaty has brought? Thirdly speaking as a member of the IMF: Britain should make clear to its EU colleagues that the new Government considers that its IMF membership legally requires it to approve and contribute to loans to countries in economic difficulties in accordance with the founding principles. The EU and its Common Currency is not a country and therefore does not qualify for such loans or assistance. In the event a country such as Greece reverted to its national currency, the drachma, then such loans would become available presumably following an IMF advised devaluation. George Osborne can today and tomorrow, most help the EU countries by extracting his colleague's heads from the sands and opening their eyes to the real world, which still exists and may soon thrive beyond the EU bubble! He should set the tone ahead of Cameron's first Council Meeting by voting on every topic with one sole guiding principle - the best interests of Britain. Given the direction of the EU, this will in most instances require voting NO to almost everything that is now being envisaged! What a change from their predecessors stance, ever since the time of Margaret Thatcher's Government, that would make. What benefits to the whole European Continent that would also eventually bring!

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