‘Two-Pack’ enters into force, completing budgetary surveillance cycle and further improving economic governance for the euro area

A new chapter in world history is being made, yet very little attention is brought to it. Not one article. When the readership gets past the friendly, politically polite terminology found within, one can see that this further subjugates EU members and that the economic sovereignty of all EU members is now gone. The United States of Europe, or European Project as some would put it, is well underway.

Since this is not necessarily an article, but a press release, the entire document will be posted.

Reference: MEMO/13/457 Event Date: 27/05/2013

Since the launch of the euro, clear rules to ensure sound public finances have been in place in the form of the Stability and Growth Pact (SGP), which sets the well-known limits for budget deficits and public debt of 3% and 60% of GDP, respectively. However, the global economic and financial crises exposed shortcomings in economic governance and budgetary surveillance at the EU level. These shortcomings were effectively addressed with the creation in 2010-2011 of the European Semester of economic policy coordination and the six legislative proposals known as the ‘Six-Pack’, which strengthened the SGP in a number of ways.

However, given the higher potential for spillover effects of budgetary policies in a common currency area, there is a clear need for still stronger mechanisms specifically for the euro area. To address this need, in November 2011 the Commission proposed two further Regulations to strengthen euro area budgetary surveillance. Continue reading

Germany shocks EU with fiscal overlord demand

On the contrary, Germany is dividing and conquering the continent deeper as it sees fit — deeper than it likes to tell its own people.

There must be an EU “currency commissioner” with sweeping powers to strike down national budgets; a “large step towards fiscal union”; and yet another EU treaty.

Finance minister Wolfgang Schaeuble dropped his bombshell in talks with German journalists on a flight from Asia, and apparently had the blessing of Angela Merkel, the chancellor. “When I put forward such proposals, you can take it as a given that the chancellor agrees,” he said. Continue reading