There does seem to be a general agreement in PH that the most likely response of the EU to the latest problems of the Euro stability can only be dealt with by permanent subsidy to the HBAT’s and I thought it might be helpful to revue the reality of the consequences that an EU decision to continue with bailing out the HBAT’s on a permanent basis must imply.

If the EU decide to permanently subsidise the sovereign states within the EU, currently facing economic collapse, then the strain of providing the necessary funding permanently can only be met by the EU, since the HBAT’s cannot contribute. Thus must require centralisation of economic control directly to Brussels.

I am mindful of the suggestions that bullet points might reduce my verbosity. To that end the changes needed will include:

•Fiscal control, Financial controls and Economic controls would be
centralised within the EU. This would effectively remove the need for
individual governments, who would effectively become large local
authorities.

•The ECB would become the only central bank with one bond market and one
central interest rate. The other Central Banks would be superfluous.

•Federal Taxes would be unified and effectively become pan European. The
tax advantages of the lower tax rates in individual states for offshore
use would be lost in one stroke.

•There would one European rate for VAT, one set of European personal
taxation requirements and allowances and one pan European tax return for
all businesses.

•There would be one central set of European personal taxation
requirements and allowances and one pan European tax return for all
individuals.

I am aware that huge changes would be required with major political and legal ramifications but I have concentrated on the obvious fiscal, financial and economic changes required to provide the huge amount of money to fund this policy, if it is in fact introduced by the EU. I cannot see any other way the EU can effectively mask the losses.

With absolute central control and puppet governments, the EU could then reapportion the economic cake as they wish. Which is the real aim of the EU on all of this I believe. That would give the EU the power and monetary backing required by this policy.

Could the EU deliver that level of change? I suspect the EU are pondering that very question currently. I personally have my doubts whether the EU can bounce this level of central control over the sovereign states even with the sovereign debt crisis, as a motivator. But I think they will try.

I think that is why there is the delay in the decision.

Perfectly correct observation, though it hardly needs pointing out that if the politicians weren't such self-serving cretins they'd have reined in the financial sector years ago.

Haha! Good point. I can only think "the triumph of the left" will ultimately be a failure

That article seems a bit confused.

"All over Europe, the working classes are enduring appalling deprivations in order to sustain a financial system which benefits the wealthy foremostly by allowing their assets to remain denominated in "hard" currency."

All over Europe? That bears absolutely no relation to the facts on the ground where I live (Ireland). Specifically, welfare rates in Ireland have been largely unaffected since the crisis began. The greatest "deprivations" have been to those who "own" property and shares, who have seen the value of these assets plummet. There have been substantial levies on public sector pensions particularly for high earners, and in Ireland those people are not poor. There have also been additional employment taxes which hit the high-salaried middle classes the most (I now pay over 50% income tax on most of my salary, compared to almost nothing for a minimum wage earner.

The government is also bringing in graduated property taxes, including (possibly) some kind of super tax on expensive properties. These new taxes are absolutely not hitting the poorest harder.

I also think the idea of cash-in-the-bank being any kind of inflation-proof store of value is ludicrous given the obvious inflation risks the Eurozone is currently facing.

I welcome facts from other Eurozone countries rather than the usual poorly argued anti-Left invective (which I might agree with if it was actually coherent).

I recognise your earlier post. Which seems entirely well written to me. I was trying to codify the main points of my argument but various individuals, including you, have made the points before me.

What I was trying to do was elucidate the difficulties into a form which would draw a response from the pro Euro camp which actually forced the followers to recognise the huge downside of this path.

As AndyZarse and others have repeatedly sought to do. Without success. It would appear that the followers of the supremacy of the EU cannot actually formulate a response. Presumably they simply believe in fairies.

If this EU madness continues there will be horrendous consequences in Europe.

Can we start with London? Can we? CAN WE?????

The poor show in the UK economic data is convincing a lot of people that Monetary Easing (printing money out of thin air) is on the way again.. PMI is poor again. Morgan Stanley have reduced their UK outlook to a 0.5% contraction in GDP for 2012..

On the Euro side however, the current rally thanks to promises of "bold action" from the ECB will subside soon which will balance things out again.

Bazooka or not, that's the real question. When push comes to shove I have no doubt it will get used.
Focus will move from the Euro, won't be long before it moves to the UK.

Economic suicide, but sadly I wouldn't be surprised if they resort to it in line with their "Save the Euro at all costs" plan

Spain's Olympics success so far, even with all these people with so much time on their hands.

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