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Dublin: 9 °C Sunday 26 May, 2013

EU Commission could be given powers to impose austerity – report

The president of the European Council has proposed a radical shake-up of the eurozone ahead of the upcoming summit.

Herman Van Rompuy
Herman Van Rompuy
Image: Virginia Mayo/AP/Press Association Images

THE EUROPEAN COMMISSION could be given powers to impose austerity measures that usurp governments of bailed out nations such as Ireland under proposals being put forward by the European Council president, it has emerged.

The Guardian reports that the proposals are being put forward in a document by president Herman Van Rompuy who will chair the crucial EU summit in Brussels this Thursday and Friday as leaders look to thrash out a deal that will convince markets of the single currency’s future.

The paper reports that under the proposals in the document bailed-out countries could be stripped of voting rights in the EU if there is non-compliance with EU directives although this proposal appears to have been dropped.

The document also proposes “more intrusive” control of national budgetary policies by the EU which could enforce fiscal discipline on a supra-national level. The draft document also discuses the potential for the harmonisation of pension reforms, social security systems, labour market policy, and financial regulation across the eurozone.

It also argues in favour of eurobonds, or the pooling of eurozone debt, which is seen as one way of solving the crisis. However, this is something that the German government is against.

Earlier, German finance minister Wolfgang Schauble argued that the threat of a downgrade of the eurozone’s credit rating by Standard & Poor’s was the “best possible incentive” for European leaders to agree measures later this week.

For more information, see Guardian.co.uk >

Germany welcomes S&P moves to downgrade eurozone >

Merkozy: Europe needs a ‘tougher’ treaty >

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Comments (37 Comments)

  • Any treaty change will require another referendum in many states and this time you’ll be told to stick your EU up your AH.

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  • You have to “go Egyptian” on them. You have to put so many angry people on Dublin’s streets that they move the government to Limerick for safety. That’s how many people this is going to take. Remember, these are the sons of the people who brought you the Great Hunger. It may be 150 years later, but they’re playing by the same rules. They will starve you and your children to please their foreign masters.

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  • Austerity is just s fancy name for poverty.

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  • The EU is on a massive power trip and grab. They will use this “crisis” to scare the masses and they will obediently oblige. What this treaty proposes is to enshrine “austerity” into our constitution. Two words for the EU, the second word is Off

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  • Don’t think the Irish will vote from any treaty coming from Europe again

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    • It depends on what it is. Given the visible knife edge, and the falsehood of merkels “oh we’ll hash out something amongst the 17 eurozone” line (that’s a lie) then the treaty created may be the best it can be, because it has to be palatable to incredibly volatile peripheral countries. The imperial wallowing hogs at the core are out of threats at this point. This treaty will have to make sense. If it doesn’t, we kick it in the groin, two times if needed, knowing our governments.

      Either we dump it and the euro and peg immediately to sterling, or we stay in on the best terms the peripheral countries can get. When our economy wasn’t gutshot we rarely had any problem with the three percent ceiling. France has far bigger problems with the proposed regime. They are fat old and living off two hundred year old imperial lash wealth.

      Imposed fiscal trigger discipline isn’t insane as a notion with a politically dispersed central currency.

      Realistically, if we hope to save the currency and avoid getting blown to financial pieces with an uncontrolled dissolution of the euro, there has to be a deal.

      If sarkozy starts talking about our corporate tax however, we need to immediately tell everyone, and particularly him, to go fuck themselves.

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    • I surely hope you’re right!

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  • Ireland unfortunately has become a place that is only for the wealty, healty and people in the know, sych as Endas friend that got his pay reviewed upwards. If your elderly, sick, disabled or have no work then Ireland is not for you. Something like this was Hitlers philosophy. Are you the people of Ireland going to stand for this. If you don’t shout you won’t be heard. So you have to shout out very loudly. Give us back the Ireland our ancesters fought and died for, and tell the Hitlers bastards to go fuck yourselves. All that is needed is COURAGE

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  • Simon 06/12/11 #

    I don’t think we’ll be given the opportunity to vote. They know by this stage, that they’ll be told to “go away”, but less politely.

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    • A chara they have no choice but to give us a vote !! Our own constitution still over-rules lisbon treaty ? In theory & practice, we are still a republican democracy no way it can be changed without a coup d-etat ?/

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    • Simon 06/12/11 #

      I understand the ramifications from Crotty and the SEA, but I genuinely think they will do anything to avoid facing the people on this one, even if its repugnant to democracy….any further.

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    • True, I read somewhere a couple of weeks back that they were looking at bringing in regulations to introduce fiscal oversight measures, think they can be assured that referendum here wouldn’t hav the slightest hope of passing…and hopefully that might exempt us from the more intrusive provisions.

      Read an interesting article the other day about how market based systems are always undemocratic, written in the early 80s…kinda eerie:

      http://www2.widener.edu/~spe0001/105Web/105WebRead/105webreadings/The%20Market%20as%20Prison.pdf

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    • I fear that they will work around it. Democracy and the EU seem to be mutually exclusive at this stage.

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    • Because the EU is a market-based model, rather than one that places the market as subservient to society. Of course, as Lindblom points out, there is no example of a democratic society that’s managed to successfully tame market forces – it’s about time that we changed that.

      But, needless to say, this EU treaty is going to do exactly what “The Markets” and big business want, so as to avoid the punishment, in terms of unemployment and economic volatility, that will follow if they aren’t appeased.

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    • Market systems are a the antithesis of democracy and were designed to be such. It is the job of democratically elected governments to regulate and govern, that’s what we put them there for. When that function of the state collapses through corruption and capitalist influence in the political fabric we have what we see now.
      It must be remembered that the bonded system of market trading was initially introduced to fund wars and military campaigns and works best in an environment of mass manufacturing and social chaos.

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  • Time for a default and quick exit

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  • I think what he’s threatening here is that further bailout funds that become available by virtue the ‘pooling’ of euro-zone debt would be conditional on austerity measures imposed on weaker country by the ‘Big Willie’ nations. This may be a way of avoiding Treaty change and instead attach a ‘begging bowl’ imperative.
    Stick your Willie where your mouth is Herman!

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  • The notion of central austerity is ill considered of local law, union agreements and all the protections that make it impossible for our own guys to enforce reform. I’d like to see the take on the HSE and win.

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  • NFFM: There has already been a coup d’état in this country. It may have been performed economically rather than militarily and by private corporate interests and big business as opposed to another state, but that’s what has happened nonetheless. If people took the time to really understand Lisbon they would realise that we are now part of a European Federation in all but name and our constitution is no longer worth the paper it was written on. Only a collective, conscious awakening can reverse this, a realisation that WE have the power and that only by ceding our power to our so-called paymasters can they have any hold over us. Peaceful, mass civil disobedience is the ONLY possible way out for Ireland. Alas I feel the people of this island have been sleepwalking for far too long and are unlikely to do anything at this stage about the rape and pillage of our once proud nation, preferring instead to focus on trivialities and point fingers while largely refusing to accept any individual responsibility for the mess we’re in. I am of the opinion that until we free ourselves from fear and begin to take personal action things will continue to worsen.

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  • Brian 06/12/11 #

    I’m so sick of this sh#t. I didnt even bother reading the article after I saw its heading. They got the cuts they asked for in today’s budget. We’re “playing ball” with them in terms of the austerity package (I’d never come across the word austerity up till about a year ago btw) what do they want next? Blood? My first born child? They can have my piece of crap house I bought at the peak of the market.

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  • Take one good look at that rheumy eyed cretin in that photo at the top of this article and try tell me that he is not an evil bastard.

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  • The euro is joke the government are pandering to their puppet masters in Europe . Germany want to keep going with the euro because it benefits them to our detriment we need to get out and default now let the euro chips fall where they may

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  • And then they’ll ask us again and we’ll bend over and say pass the Vaseline.

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  • I’d love to take a PUNT on it but I am no good at maths :)

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  • Be sure that Ireland will vote YES in any referendum. We will be sweetened with less Interest rates on our bailout and possibly a cut in overall debt owed. If the EU propaganda machine can convince what was once one of the proudest patriotic people in the world to give away their Independence and Sovereignty, be sure the next referendum will be a walk in the park

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    • I know you’re just trying to annoy everyone but really think a future EU referendum will be a resounding no.

      Think families have to get out though. Less room for the riot police if the kids come out.

      There might be less need for you soon, people are really beginning to get seriously pissed off. Going to miss you Magic.

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  • The budget in Ireland will be of little benefit if the Euro Crumbles.

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  • I wonder who’s doing the catering @ this shindig later on ??

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  • WE are at the mercy of the markets. They will decide the fate of the Euro. I hope this Friday Minsters metering in Brussels will come up with a solution. Not a lot of talk as they usually do. Things are to seirious now. There is an need for genuine action. I am in favour of the ECB helping out.

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  • Nope Simon ? shall leave for another day ??

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  • I hope the E U gets a treaty passed as we seemed to screw up our own country perfectly. It couldn’t have been a more perfect sabotage of our country yet we blame others. When the SSIA’s were introduced whereby you received a 100% return on your money from the government I thought that was the beginning of the end. Who gives away money? Not the Germans.
    Now we must pay for all the giveaways. Our government under FF killed our future and this lot are assisting in our burial.

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