Germany's Bundesbank has issued a blistering critique of EU bail-out policies, warning that the eurozone is drifting towards a debt union without "democratic legitimacy" or treaty backing.
"The latest agreements mean that far-reaching extra risks will be shifted to those countries providing help and to their taxpayers, and entail a large step towards a pooling of risks from particular EMU states with unsound public finances," said the bank's August report. It said an EU summit deal in late July threatens the principle that elected parliaments should control budgets. The Bundesbank said the scheme leaves creditor states with escalating "risks and burdens" yet no means of enforcing fiscal discipline to make this workable.
No shit. Those Germans really are fiscal geniuses after all.
Still, at least Dan Hannan can say "I told you so".
More to the point, the whole scheme is against the rules. The only reason that Germany and the other net contributor states agreed to the single currency in the first place was that a clause was written into the treaties prohibiting EU-backed loans to indebted governments. The treaties are now being rewritten to remove that clause. In the mean time, though, no one in Brussels is trying to pretend that the bailout is legal.
As for Germany's political and banking institutions, well...
You made your bed—it's a bit late to stop telling lies in it.
UPDATE: England Expects has discovered the EU Commission's infallible solution to the financial crisis!
In the face of a constant rolling crisis in the Eurozone finally the European Commission has been moved to act.European Commission proposes to make 2013 the "European Year of Citizens"
As Mrs Reding, the Commissioner puts it,It will be a good opportunity to remind people what the European Union can do for every one of us.
We are saved!