Tuesday, January 31, 2012

ESM to enter into effect before its Treaty signed

The ESM, which will take over the role of the EFSF, was agreed yesterday by the Euro Group to enter into effect in July this year, but the Treaty governing financial contributions will not be signed until some time later! Read Reuters from here.

So which member state will be able to legally allocate funds for its use, or lend to it AND if any did, which national leader would be sufficiently stupid so to do?

Only ones daft enough to describe a Treaty agreed at an informal meeting as signed or one not yet signed as binding, many things I have heard and said myself about the EU, but never that it was a place such as the Baltic Exchange, where one's word was one's bond!



Anonymous IanPJ said...

Which leaves one to ask why is Germany pushing for this, as their own Constitutional Court have forbidden Germany to sign, and have only allowed membership of the EFSF because of its temporary nature.

Unless, by not signing a treaty, Germany can capitalise it first without breaking its Constitution.

Sooner or later though this will bring the German government into conflict with its own Constitutional Court.

A new German Enabling Act anyone?
History repeating...

3:26 PM  

Post a Comment

<< Home