Brussels Warns Rescued Nations will Suffer Painful Economic Conditions
August 14, 2012
The vice president of the European Commission forecasts complete economic union by end of 2012.
By LUIS MIRANDA | THE REAL AGENDA | AUGUST 14, 2012
The financial vice-president of the European Commission (EC), Olli Rehn, warned today that countries in the euro area that are in distress and seeking recourse to the European rescue fund to buy bad debt will be subject to “strict conditions”.
“These instruments, which allow intervention in debt markets when necessary, should follow the request of a Member State and be subject to strict conditions,” Rehn said in a newspaper column published in The Wall Street Journal, in which he presented what he called “European Monetary Union 2.0”.
The Commissioner for Economic and Monetary Affairs indicated that these conditions will be marked “through established political processes between national leaders and European authorities,” while noting that the EC is “ready to carry out strict monitoring conditions and effective as needed. ”
He argued that “to ensure that these interventions help to lower risk premiums over a period of time, they will be available only for states that implement good budgetary policies, adopt structural reforms for growth and employment and respond to macroeconomic imbalances.” These are the words of someone who seems determined to demand anything and everything from nation-states that make the mistake to request a financial rescue, such as Greece and soon to come Spain.
Rehn welcomed the availability of the President of the European Central Bank (ECB), Mario Draghi, to consider “more unconventional measures” to repair the transmission of monetary policy in the euro area, while stressing that the ECB will remain “an anchor for stability throughout the crisis. ” As the memo of understanding dictated by Brussels and written by Spain establishes, countries will surrender their economic and financial sovereignty as a primary condition for the European bankers to ”rescue” them from the debt black hole. Keep in mind that the word rescue is used loosely, and its real meaning is acquisition of nation-states by banking institutions.
“Europe is committed to creating a real economic union to complement and strengthen our existing monetary union,” defended the financial vice-president, who moved that “a roadmap” to achieve that objective will be presented “at the end of the year.” And for this economic union to take place it is needed that all countries be under one single entity that dictates all policies to be followed. This is what Mr. Rehn means when he calls for a “genuine economic union”, a bloc of countries ruled by banking elites.
He also said that the permanent rescue fund will be operational “soon”, while indicating that European leaders have agreed to “explore the conditions” which would be “rational” for the European countries. That idea must be, according to Rehn, a “guiding principle” a way of “additional financial risk pooling”, which will require time to “deepen the integration of the decision-making process,” which “will not be easy to translate into concrete action,” he acknowledged.
“The debt crisis has underlined the need and created the conditions for Europe to rebuild and strengthen its economic and monetary union. Thus the euro zone will continue to defy its critics,” said European Commissioner in the text published by the New York newspaper. In reality, what these words mean is that the purposely banker created crisis has provided them with a new opportunity to acquire more control and more power under the premise that they — the bankers — are best at “getting us out of it”. By the way, the critics of the Union are not people who don’t want Europe united, but those who reject the notion that independent nations must surrender to global banking institutions in order to exist.
Recognizing that the euro zone is at “a turning point not only in its debt crisis, which has lasted three years, but in its thirteen year history,” Rehn said. He added that in the past two years they have made “significant progress” , giving the example of Ireland and Portugal and even Greece, which “has achieved more than is generally recognized.” What Mr. Rehn means is that in the case of Greece, the bankers have been able to fully gain control of its government and its economy, much like they did in Argentina at the turn of the millennium, when the country went from having first world status to becoming a dungeon with more people than living in poverty than ever before.
Rehn defended the measures taken by the Spanish government “to create a product and services markets more competitive, reform labor laws that have hindered the creation of jobs and bring stability to public finances.” These are always the promises made by politicians: more jobs, more production, more competitiveness, but in reality all they achieve is more big government controlled by outside forces that intend to curtail development and progress and whose only intention is to starve nations to death as a policy for control.
He added that rescuing the banking system in Spain last month was a move to provide “restructured and recapitalized banks that are effectively regulated and monitored rigorously.” He forgot to add that such regulation and monitoring will be done by bigger, more powerful banks and not the states where those banks operate.
Rehn also reminded in writing that the U.S. and the EU are “in this together”, so he called for support, “instead of blaming” each other, to work “on both sides of the Atlantic to learn the lessons of the past and ensure that emerge stronger from the current crisis. ” A stronger centralized control in the hands of the bankers, that is.