Janice Atkinson for The Daily Mail
28th June 2012
The break up the eurozone is inevitable so the sensible strategy would be to plan a strategic way to dismantle the single currency rather than these haphazard attempts to save it.
As the leaders of the eurozone gather to meet for yet another euro crisis meeting, Spain has warned it cannot continue to fund itself with such steep borrowing costs, France disagrees with austerity measures and Germany refuses to bail out the PIGs, so where to now?
Our enlightened leaders are expected to increase the capital of the European Investment Bank by an extra €10bn, with Britain contributing €1.6bn. But it leaves the underlying problem untouched. That is, the eurozone is a divided entity, uniting very disparate economies, cultures and peoples.
Some argue that Germany needs to bail out the rest of Europe and to have full banking, fiscal and monetary union, but that means the eurozone governments would need to hand power to a central authority (the un-elected European Commission in Brussels) that can pay for and supervise all of the above, while national governments accept that in future they have to keep their own spending strictly within their limited means. And therein lies the problem because this is about totally surrendering your democracy, financial autonomy and, ultimately the 475 million souls of the people of the eurozone countries.
The 475 million euro membership has helped make the nations of Greece, Portugal, Ireland and Spain into debt slaves under the control of the European Commission and ECB and Cyprus is now trotting behind. ‘More Europe ‘ is the cause of greater unemployment and poverty in these countries, and not the solution. The ideas suggested today of banking union, debt union and political union are all without the consent of the peoples of Europe.
Germany is faltering and finally the Deutchmark is dropping. On the front page of Germay’s equivalent of the FT, Handelsblatt, under the headline, “Nein! No! Non!”, the paper’s former Editor Gabor Steingart argues that Merkel’s rejection of debt pooling was the best moment of her Chancellorship, and that “this is the Merkel that one wishes to see more often.” He adds, “Now she has to explain to our friends at the summit that that it helps no one if Germany passes the fruits of its labour around liberally. It is actually the other way around: ‘Yes’ to Europe means ‘No’ to Barroso’s ideas.”
The solution for this weekend is two-fold. One, to prepare for an alternative Europe with the break-up of the euro and return to full democracy, trading with other European nations (the old EEC) and the re-introduction of the former currencies. Two, to offer full political, fiscal and banking union but under referenda.
So, if Mr Barroso and his fellow bureaucrats want the latter he should hold referenda and let the peoples decide. In any case, Britain should have the choice, whatever is decided on our behalf this weekend. We want our referendum.