Sunday, December 11, 2011

New Treaty Fiscal Rule & Fiscal Compact prove Sovereignty Abnegation an IMPOSSIBILITY!

The founding premise of this blog and the source of its longstanding and constant opposition to what has become the EU stands on the personally-held, certain belief, that national sovereignty is not divisible. A nation either has it or it does not.  Jean Monnet and the Schumann Declaration, as discussed earlier this week, were absolutely 100% wrong on their premise that it was divisible. In my view thay well knew that fact. Now, finally we are ALL seeing the proof.

Look at the terms of the fiscal rule in the fiscal compact agreed last week and supposedly to be enshrined into the national laws and constitutions of the 26 former sovereign states whose leaders assented to this agreement. The entire terms of which is again linked from here.

A new fiscal compact
4. We commit to establishing a new fiscal rule, containing the following elements:
• General government budgets shall be balanced or in surplus; this principle shall be deemed respected if, as a rule, the annual structural deficit does not exceed 0.5% of nominal GDP.
• Such a rule will also be introduced in Member States' national legal systems at constitutional or equivalent level. The rule will contain an automatic correction mechanism that shall be triggered in the event of deviation. It will be defined by each Member State on the basis of principles proposed by the Commission. We recognise the jurisdiction of the Court of Justice to verify the transposition of this rule at national level.
• Member States shall converge towards their specific reference level, according to a calendar proposed by the Commission.
• Member States in Excessive Deficit Procedure shall submit to the Commission and the Council for endorsement, an economic partnership programme detailing the necessary structural reforms to ensure an effectively durable correction of excessive deficits. The implementation of the programme, and the yearly budgetary plans consistent with it, will be monitored by the Commission and the Council.• A mechanism will be put in place for the ex ante reporting by Member States of their national debt issuance plans.

The document, taken up in the early hours of 9th December 2011, is living proof-positive that the ideals behind the founding of the Treaty of Rome could only succeed with the complete merging of  the membership's sovereignty, always the inevitable destination of "ever closer union".

It will now be interesting to see how the various leaders of the  ex-nation member states propose to explain this brutal truth to their electorates, set as it will be against the background of an ever more certain  and obvious economic crash, entirely explained by this vainglorious imperial folly and complete economic incompetence.

Attempts to blame the British, already begun, seem, surely, unlikely to succeed for long!

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Blogger an_englishman_abroad said...

Are there any examples of a common currency over several jurisdictions without a central authority over the financial matters of the jurisdictions. The previous Russian dominions come to mind with the Russian rouble. Once the financial controls of a country belongs to an outsider that country has lost its independence. Or in other words He who has the gold, rules.

6:45 PM  
Anonymous IanPJ said...

Liechtenstein - Currency - Swiss francs (CHF)

Liechtenstein has the second highest gross domestic product per person in the world when adjusted by purchasing power parity,[10] and has the world's lowest external debt. Liechtenstein also has the second lowest unemployment rate in the world at 1.5% (Monaco is first).
It is a member of the European Free Trade Association and part of the European Economic Area but not of the European Union.

7:37 PM  
Anonymous IanPJ said...

You may also be interested in this, as to how it used to be done.

7:44 PM  
Blogger Martin said...

Many thanks. I visited Lichenstein and stayed overnight once out of curiosity. It is in CH, but has a border with Austria. The Cantonal confederation style of Swiss governance allows it to survive. I see Switzerland as a constitutional blueprint for the land-locked European nations to trade together but believe Lichenstein, too small to really prove an example to any but perhaps Andorra and San Marino.

9:08 PM  

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