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Sancho Panza

Eu Uses New Budget Powers To Demand More Austerity In Italy And Spain

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Telegraph 15/11/13

'Spain and Italy have been warned that their budgets for 2014 are in breach of European Union rules as Brussels uses new powers to force governments to revise spending plans before national parliaments vote on them. France was also cautioned that plans for painful economic reforms represent only "limited progress" as the European Commission exercised new eurozone powers in a historic shift of sovereignty away from elected governments.

"Because in an economic and monetary union, national budgetary decisions can have an impact well beyond national borders, member states have given the commission the responsibility," said Olli Rehn, the commission vice-president in charge of the euro.

"I trust that they will thus be taken on board by national decision makers."

Germany, Europe's largest and most successful economy, was also criticised for making "no progress" in following EU recommendations to help its eurozone neighbours by spurring domestic demand and imports.

Despite disappointing growth figures and mounting concern that eurozone austerity policies are killing off recovery and locking southern European countries into protracted slump, the commission ruled that "further consolidation in euro area countries is necessary".

For the first time, the EU's Brussels executive has reviewed draft national budgets before national legislatures have voted on them, flexing political muscles aimed at preserving stability for Europe's single currency and at preventing a future eurozone debt crisis.

"This a historic moment," said an EU diplomat. "One has to ask whether the eurozone's voters yet appreciate what a huge shift in sovereignty this is away from national parliaments to conclaves of finance ministers and commission officials."

Italy and Spain, the third and fourth largest economies in the 17-strong eurozone, were upbraided for breaking debt reduction targets in breach of spending caps that are enshrined in the Maastricht Treaty that created the euro.

Backing off demanding the revision of budgets or penalties for now, Mr Rehn said he was "inviting" governments and parliaments to bring their budgets for next year into compliance with the rules as interpreted by the commission. "This exercise is much more about partnership than penalties," he said.

The commission's Italy verdict is political dynamite in a situation where Enrico Letta, the country's prime minister, is besieged in parliament by coalition disputes over tax reductions and Left wing opposition to austerity cuts.

Italy has the second-highest level of gross government debt in the eurozone, which is projected to rise to 133pc of the economy, second only to Greece, but it is in line with an annual target requiring annual debt to be under 3pc of annual GDP.'

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The delusion of control will be highest just before it all falls apart. Not long now.

....and so will the ambition of those trying to grab all of the control.

....problem with socialism is that it is incapable of owning up to mistakes......as everything crumbles around the central planners, the only mechanisms they have left to convince the populace that they are still in control and everything is OK is propaganda and brainwashing.

when it appears to joe public to be untrue then they resort to bullying and the use of force.

been done basically everywhere with "red" governments.

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The Greeks, with their penchant for sodomy, are used to bending over. However, the Italians are a different matter. They will rebell at this.

Edited by The Masked Tulip

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The Greeks, with their penchant for sodomy, are used to bending over. However, the Italians are a different matter. They will rebell at this.

I am sure that every Italian prefers deficit government spending and hyper devaluation of savings ...

lirel.jpeg

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I am sure that every Italian prefers deficit government spending and hyper devaluation of savings ...

lirel.jpeg

They probably will if it means controlling their own destiny.

How long are the PIIGS going to suffer so that Germany prospers?

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I am sure that every Italian prefers deficit government spending and hyper devaluation of savings ...

Can't be long before either Lira or Deutsch Marks are back.

In 90s Italy was a big manufacturer (certainly for electrical equipment exported to UK) - can't remember last time I used something built in Italy.

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They probably will if it means controlling their own destiny.

How long are the PIIGS going to suffer so that Germany prospers?

Do not you mean rather:

How long are the PIIGS going to suffer so that Germany, Central EU, Northern EU, Western EU and Eastern EU prosper?

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The Greeks, with their penchant for sodomy, are used to bending over. However, the Italians are a different matter. They will rebell at this.

If we're going to flirt with national stereotypes here, then the Italians will first run away then will capitulate and change sides.

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Can't be long before either Lira or Deutsch Marks are back.

In 90s Italy was a big manufacturer (certainly for electrical equipment exported to UK) - can't remember last time I used something built in Italy.

well if youve been on virging trains west coast line, they use those "pendolino" thingies.

the ones that slightly tilt.

...in fact we sold them the technology for that about 30 years ago..but they sold it back to us because the UK government was so far up it's own @rse it didn't think it should be investing in "in-house" manufacturing.

...but they were(are) taking orders from EU commission at the time....so the onslaught continues until we put our foot down and tell them to feck off.

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If we're going to flirt with national stereotypes here, then the Italians will first run away then will capitulate and change sides.

no, their leaders do brovado in spectacularly good fashion.

when things start to look a bit dicey then they'll capitualte.

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no, their leaders do brovado in spectacularly good fashion.

when things start to look a bit dicey then they'll capitualte.

I thought they were already well past brovado and comfortably into dicey, but I take your point.

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