Tuesday, June 12, 2012

EU Member Nations to Sacrifice Sovereignty?

They may find it difficult not to:

Euro crisis: It's still not over
[...] Banking union: European Union leaders are expected to discuss plans to form a banking union in Europe when they hold a summit June 28-29.

The EU proposal would include a single deposit guarantee organization covering all banks in the union, something similar to the FDIC in the U.S..

There would also be a common authority and a common fund that would deal with bailouts needed for the cross-border banks that are major players in the European banking system.

In addition, there would be a single EU supervisor with ultimate decision-making powers for the major banks, and a common set of banking rules.

The move would represent a step towards greater centralization of European authority. But it remains to be seen if all 17 eurozone governments will agree to sacrifice sovereignty for the sake of the union. [...]

I've posted previously that those who've created this crisis are now using it to consolidate their power. Sure looks like it.

The article also mentions that France as well as Greece, are having elections on June 17th, which are expected to move both further left politically, probably in the hopes of avoiding austerity measures. I suspect that further consolidation of the EU will then be offered as the only possible solution. We shall see.

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