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Merkel and Sarkozy plan is recipe for disaster

category international | eu | press release author Wednesday August 17, 2011 17:04author by Malachy Steenson - Workers Party Report this post to the editors

Padraig Mannion, EU spokesperson of the Workers' Party, has slated the Merkel-Sarkozy plan for the Euro as economically incompetent and politically disastrous, and said it must be rejected out of hand by the government

Merkel and Sarkozy plan is recipe for disaster

Padraig Mannion, EU spokesperson of the Workers' Party, has slated the Merkel-Sarkozy plan for the Euro as economically incompetent and politically disastrous, and said it must be rejected out of hand by the government.

“The Franco-German proposal” stated Mr Mannion “will have no positive influence in stabilising the Euro, in reversing the stock market slide, or in relieving the massive financial burden on the peoples of Ireland, Portugal and Greece”.

“President Nicolas Sarkozy and Chancellor Angela Merkel are both playing to nationalist and xenophobic audiences and are both fighting for electoral survival. The proposed adoption of new powers for the European Financial Stability Facility rescue fund, as well as new powers of oversight for the ECB and the Commission will merely place a stranglehold on fiscal independence and prevent the smaller economies like Ireland from growing their way out of the present crisis.”

“Merkel and Sarkozy have also failed to tackle the cabal of institutions which control and manipulate the markets. As we have seen so often in the past it is the senior dealers and management of these institutions who are the only beneficiaries of the economic destruction wreaked by their market manipulation. Even at the very faintest mention of the Tobin Tax on financial transactions they are manipulating the market downwards to increase the pressure on the Euro and the so-called peripheral countries”.

"The political implications of the Merkel Sarkozy deal are very wide-ranging and, at a time when many are already questioning the very basis of the EU and most especially the basis of the Euro, they propose an acceleration to even greater EU integration”.  

 "As an initial step they suggest an enlarged role for EU president Von Rompuy - but he is scheduled to leave in 6 months. Are they suggesting that the anonymous Mr Von Rumpuy should continue in office or are they suggesting that the office itself would have these powers? In either event these proposed new powers are an exact throwback to the proposed role for the EU president as envisaged in the discredited and democratically rejected EU constitution. Are we now to get the EC constitution by the backdoor?

 “It is widely accepted that we have lost our economic sovereignty and yet we are assured daily by this government that the massive cutbacks and hardship being suffered by the people is putting us on the path to rapidly regain that sovereignty. It is obvious that if and when these proposals filter through into reality that our economic sovereignty is surrendered in perpetuity. How long then until our final shred of independence in foreign policy is also gone?  Where is democracy in all this debate? Where is the right of people to participate in decision making? Will there be a referendum – will it be respected?”

“Germany and France have usurped the powers of  the Council of Ministers. These new proposals rapidly advance the scenario which we predicted during both the Nice and Lisbon Referendum campaigns of a powerful and unelected centre dominating the EU, eroding on the powers of national parliaments and increasing the democratic deficit. In the interest of democracy and the needs of the people of Ireland they must be defeated.”

Related Link: http://workerspartyireland.net/
author by Tpublication date Fri Aug 19, 2011 00:43author address author phone Report this post to the editors

The WSWS website has a good analysis of the meeting yesterday between Merkel and Sarkozy and they don't give it much chance either and see it mainly as part of the PR exercise to save the Euro.


However they do say this:


Despite the meagre outcome, the meeting between Merkel and Sarkozy was more than a failed public relations event. Both signalled to the financial markets their willingness to push through further cuts programmes and the establishment of a kind of European financial dictatorship. They just need more time.


Even before the meeting, it was clear that the euro, and with it the European Union, cannot be maintained if Germany does not reach deeper into its pockets to satisfy the creditor banks. So far, the German government has always insisted that each country is responsible for its own debts and tied its support for the euro rescue fund to tough conditions.


The consensus seems to be that unless Euro bonds are introduced the Euro will fail. Introduction of Euro bonds would lower interests for all the peripheral countries and thus prolong things a bit and at the same time the Euro bonds would have a cost on Germany and it is that which is causing a resistance because Merkel would probably lose power over it. This is where their proposal comes in which is basically as a pre-condition for the Euro bonds, Germany and France would impose financial and economic dictatorship over all the other countries.


It seems all pretty much unstable to me.

author by German.publication date Thu Aug 18, 2011 12:56author address author phone Report this post to the editors

If Gernans stop paying the Irish the Germans will still be rich.


.

author by opus diablos - the regressive hypocrite partypublication date Thu Aug 18, 2011 12:39author address author phone Report this post to the editors

What with the World Bank, IMF, and NATO/Pentagon global enforcement monitored by NASA sattellite-surveilance and data-mining at ground level.


Given the raft of planetary shit hitting the fan we need global management structures. But that means a harness on the current global 'one-world' corporate anarchy.


Unfortunately, its looking like the leviathan is going to have the pull the house down before we get a saner and more sustainable model. The Security Council is not fit for the purpose announced in its label, other than the security of the imperial zombies dragging us all towards their overdue interment.


The current propaganda regarding the possibility of General Assembly recognition of Palestine indicates there may be a pulse in the bambino of global polycentrism glugging at the bottom of the stagnant Great Gamesters bathwater.

author by Damien M - PWpublication date Wed Aug 17, 2011 21:20author address author phone Report this post to the editors

One World Government is coming folks. From Maastricht to Lisbon, The Beast...I mean the EU is creating it by stealth i.e. treaty after treaty."All the nations need is the right major crisis and they will accept the New World Order," so said David Rockefeller anyway, or something to that effect. Before ye know it ye will be queueing up to get the chip because you won't be able to buy or sell without it...

author by Tpublication date Wed Aug 17, 2011 20:39author address author phone Report this post to the editors

It is hard to believe that they have even openly proposed this plan because at face value they are saying Germany and France will form a new government of Europe and decide matters. It bypasses the EU parliment and commission although the EU commission is a farce because the commissioners are nominated and not elected and they are besized by corporate lobby groups. What is funny about the plan is why do Merkel and Sarkozy believe all the other countries will even go along with it. It doesn't even have the pretense to be a federal system.

 
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