Monday, May 17, 2010

And the first to agree to German law are the Austrians

I was reading Ambrose Evan's Pritchards rather doomy and inflamitorily titled post from a couple of days ago just now,
Europe's fiscal Fascism brings British withdrawal ever closer
when a tweet from Slugger honcho Mick Fealty popped up.
@mickfealty Berlin calls for eurozone budget laws #FT
And it looks like a transparant power grab from Berlin,
The German government is to press other eurozone countries to adopt their own versions of Berlin’s balanced budget law as part of a set of sweeping reforms to stabilise the euro.
There is some idea that each country would be free to set upo there own version of the German law, yes, but this is all getting err... a bit concerning.

And yes in a pre-Anchluss moment we have Austrian support,
A German government official told the Financial Times that one of Mr Schäuble’s proposals would be for other eurozone countries to adopt similar fiscal constraints to Germany’s Schuldenbremse – as the law is known.

“Something like that would be a good idea for other countries to have – although it might take on different shapes and forms for each member of the eurozone,” the official said.

The severity of the euro crisis could give impetus to Berlin’s proposed reforms, which would have been unthinkable even six months ago.

The idea has won the the backing of the Austrian government. “Considering the high indebtedness in Europe, I am in favour of a Schuldenbremse,” Josef Pröll, Austria’s finance minister, told German newspaper Die Welt.

“This would lead to a clear cap on new debt, strict budgetary discipline and balanced budgets in Europe,” he said.

Will one size fit all? And will this just be for the Eurozone, or will it be brought in under Article 122 of the Lisbon Treaty which of course means it comes under QMV?

1 comment:

Anonymous said...

The alternative coalition - Nigel Farage and Douglas Carswell agree: