The Future of Europe

This piece of information has been weighing on us for a while. Back on October 29, Mike Shedlock reported on a new European financing initiative called the European Stability Mechanism (ESM). It is frightening in its power and scope.

First, watch this video as posted by The Telegraph. It identifies key aspects of this new treaty.

Mish summarizes the important features:

  • Article 8 says “Authorized Capital stock 700 billion Euros”
  • Article 9 says “ESM members irrevocably and unconditionally undertake to pay capital calls on them within 7 days”
  • Article 10 allows the ESM board of governors to “change the authorized capital and amend article 8 accordingly”
  • Article 27 says ESM shall enjoy “immunity from every form of judicial process”. Thus the ESM can sue member countries but no one can challenge it. No governments, parliament or any other body or laws apply to the ESM or its organization.
  • Article 30 says “Governors, alternate governors, directors, alternate directors, the managing director and staff shall be immune from legal process with respect to acts performed by them (…) and shall enjoy inviolability in respect of their official papers and documents”.

In short, an unelected and nonrepresentational body, which with its officials would be completely above any law, would have an unlimited claim on the finances of a member country. Questions that remain are:

  1. How is the governance of this body constituted?
  2. In what larger framework does this body fit?
  3. What are the enforcement mechanisms and when will they be in place?
  4. What is the state of member approval?

What Did Merkel Really Say?

It may be coincidence but in an article dated October 26, The Telegraph quotes Angela Merkel, the German Chancellor, from a speech she made to the German parliament. Her speech gained world attention because it either hinted at or threatened the possibility of war in Europe, and the issue was the integrity of the euro.

She told MPs: “Nobody should take for granted another 50 years of peace and prosperity in Europe … that’s why I say: If the euro fails, Europe fails.” She could be saying that if the euro fails and Europe reverts to a collection of nation states, war is always a possibility based on historical precedent. She could also be saying that to achieve a stable euro which requires the suppression of national sovereignty over at least fiscal issues including national policies and budgets, overt acts of enforcement – military occupation – may be required.

Going further, she gives the German view: “We have a historical obligation: To protect by all means Europe’s unification process begun by our forefathers after centuries of hatred and blood spill. None of us can foresee what the consequences would be if we were to fail.” It really sounds like she’s saying that “we failed in 1914, in 1939, but this time we’ll make it work.” Even if this statement is intended as a pan-European view, the process is being driven by Germany to promulgate German interests.

According to The Telegraph, she said that “A future treaty must allow that eurozone countries not living up to their fiscal and budgetary responsibilities under the bloc’s growth and stability pact be taken to the European Court of Justice.” What is not stated however is how The European Court’s decrees would be enforced. Presumably at that point you either are able to initiate a police action which would be different from a military action only in semantics.

The Telegraph notes that, with reference to Greece she said: “Painful and necessary structural reforms must be implemented,” adding that a “permanent surveillance” of Greece would be “desirable”. An occupation force in other words?

As a final comment, Merkel’s remarks, although having an ominous overtone, may be completely innocuous. On the other hand they may very well signal deeper more sinister plans and intentions at work behind the scenes. They may also presage events that might spontaneously arise as a more complete integration of Europe is carried out. We do not have to draw conclusions at this point, but how the situation reported above evolves should be monitored closely, particularly with respect to enforcement mechanisms.

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