Tuesday, November 29, 2011

Angie's idea of European "fiscal union"

Edward Hugh in Last Days Of Pompeii? Credit Writedowns 11/28/2011 provides a succinct summary of what German Chancellor Angela Merkel, destroyer of the European Union, means when she proposes a tighter fiscal union:

Germany is insisting that any advance towards Eurobonds is dependent on moves to what Angela Merkel calls a fiscal union. But by this she doesn’t mean the type of common treasury they have in the US, where stronger states help the weaker ones, what she means is common fiscal discipline, with powers from the centre to enforce. [my emphasis]
In other words, Herbert Hoover economics enshrined as permanent policy.

Any political party in Europe that accepts such terms should have its credibility as a supporter of democracy seriously questioned. Including the one that is proposing it.

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