Friday, 9 December 2011

New ”fiscal compact” for eurozone (2 x updated)

How can anyone defend (or even call for more) intergovernmental solutions to common problems at the European level, or even tolerate the EU our leaders and their predecessors have built?

With democratic government and sufficient powers the European Union, the eurozone and we would not be in this impotent mess.

Well, upon leaving Mario Draghi, the president of the European Central Bank (ECB) called it a very good outcome for the euro area countries, although the deal has to be fleshed out in the coming days.

The European Council dinner finally broke up and after 5 o'clock Friday morning (local time) the announced press conference of European Council and Euro Summit president Herman Van Rompuy and Commission president José Manuel Barroso took place.

Update 9 December 2011: Herman Van Rompuy's written statement has now been posted, and it offers more detail.

Update 2, 9 December 2011: Statement by the euro area heads of state or government (9 December 2011; 7 pages). This is the paper to read, both for actions and blank spaces.

A ”new fiscal compact” is the novel Sesame between 17 eurozone members and six others, an intergovernmental agreement between 23 member states (perhaps more).

Self-imposed structural weaknesses force the leaders to continue on the road of intergovernmentalism, although credible and sustainable solutions need durable and legitimate foundations.

The United Kingdom is clearly a problem, not a part of the solution, as shown by the Financial Times report on prime minister David Cameron's demands for Britain to be able to be excepted from regulation of a crucial part of the internal market, financial services.

Thus, Cameron wants to undermine the integrity of the internal market.

Ralf Grahn