The catastrophic state of public finances of the vast majority of member states of the European Monetary Union (EMU), ie countries whose currency is the euro, frightens both supporters of this project and bankers at the European Central Bank.
The article is from the MEP's website istrejcek.cz
The euro as a political project
The single currency, the euro, is not the result of economic evolution, it is a political project. Its founders saw it as a symbolic tool for continuing the policy of ever closer European integration.
From the outset, however, it was clear that hopeless black passengers were becoming members of the eurozone. Especially because of them, an insurance mechanism called the Growth and Stability Pact was created. This agreement sets out the conditions for the coordination of the budgetary policies of the members of the EMU so that any high government deficits or high public debts do not jeopardize the stability of the euro and increase inflation.
However, since the beginning of the agreement, almost no one has complied and enforced it (including large countries such as Germany and France).
Celebrated as a successful project, the euro was a symbol of its kind and the success of the European Union project. Then came the economic crisis, which revealed the catastrophic state of public budgets of EMU members, and the euro began to shake to its foundations.
The goal is political union
That is why there is a loud talk about necessity coordination of fiscal policies members of the euro area. We must be interested in the fact that even those Member States that do not pay in euros will be subject to this obligation.
But not only that: In future, all policies that are "somehow" related to the loss of competitiveness should also be subject to central Brussels control (education, employment, social policy, supposedly targeted management of salaries and costs, etc.).
These proposals are supported by Article 122 of the Lisbon Treaty, which allows EU heads of state to take decisions contrary to the wording of the existing EU treaties in "crisis cases" (yes, this is a banal way to deprive Member States of key decision-making powers).
But even in Brussels, he knows that this is starting to go beyond everything that the citizens of the Member States are able to bite into. It is too risky for European elites to follow the path of "some" amendment to the Lisbon Treaty. They are therefore looking for another platform from which to make political decisions to stabilize the single currency.
EU President van Rompuy came up with a proposal to create a so-called European economic government. The representatives of the member states agree with it even though its outlines are not known (which is common in the EU: however, everyone usually melts away from the well-off declarations without anyone knowing what will happen next).
The EU is fleeing to create a political union if it wants to save the euro and, in essence, itself.
A few recommendations for Prime Minister Nečas
For the future Czech government of Petr Nečas it is necessary:
- monitor the whole situation closely and not allow for a "momentary inattention", in which the most serious reversals have always taken place in political history
- not to create any special ministry for European affairs and the so-calledTo fully integrate the "European agenda" into the exclusive agenda of the Prime Minister of the Czech Republic
- to build a serious and full-fledged debate in the Czech Republic on the content and goals of the current European integration process to the level of debates on the serious reform steps of its government. The public should learn that a significant part of the Czech government's decision-making is determined by the results of negotiations in Brussels
- to enforce a long-term definition of the Czech interests of their ministries on a regular basis by the Ministers of the Government of the Czech Republic control their defense at meetings of EU Councils of Ministers
- to be in close (above-standard) contact with the CNB's management and to coordinate its positions with it before the meetings of the European Council
- in the European part of foreign policy to find an intersection with the Castle
- from the point of view of the future interests of the Czech Republic analyze the consequences of the Brussels proposals to divert the euro from the impending catastrophe
- look suspiciously at the euro and stick to the Czech koruna for as long as possible
- work together to create broader political platforms of "like-minded" European political leaderswhich will be able to effectively block federalist proposals at European Council meetings
At the meeting of the European Parliament on 6 July 7, the President of the European Commission, JM Barroso, stated that he is willing to do anythingwhich will save the euro and, more broadly, the current shape of European integration ’.
Prime Minister Nečas on my own nothing can do. They must seek out European political allies and gain enough strength to effectively block "anything" together at the European Council. There is nothing less behind this than another proper commitment to democratic rules and a direct path to the formation of a political government in Brussels.