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Merkel Protests ECB’s Call for Banks to Surrender Control to Central Power

Sep. 17, 2012 2:55pm Becket Adams

Angela Merkel Opposes the Euro Central Banks Proposal to Have EU Countries Turn Control of Their Banks Over to a Central Authority

German Chancellor Angela Merkel gestures during her speech at the budget debate of the German Federal Parliament, Bundestag, in Berlin, Germany (AP)

European Union officials proposed last week a measure calling for national governments to surrender control of their banks to a central authority, TheBlaze reported.

However, there’s at least one EU leader who thinks this will point the 17-nation union in the wrong direction.

German Chancellor Angela Merkel is digging in her heels on plans for a new European banking “supervisor,” insisting Monday that they must not be rushed.

The European Commission, the EU’s executive, has irked Berlin with plans to have the new supervisor oversee every bank in the eurozone, rather than just the biggest, and to have it start work at the beginning of 2013.

“If it’s Sept. 15 today and we’re just starting the discussion, it is relatively unlikely that, on Jan. 1, a functioning authority will be standing where we don’t even have a decision on the building plans,” Merkel said at her annual summer news conference.

“What has always hurt us in Europe, particularly with the financial markets, is when we have made announcements that in the end couldn’t be implemented,” she insisted. “This must take the time needed to secure good quality.”

Merkel cautioned against rushing the process simply to hasten the day when struggling banks will be able to get aid directly from the €500 billion ($656 billion) bailout fund, the European Stability Mechanism (ESM).

She insisted that Europe must keep to its agreement that the new supervisory system be put in place before the ESM is allowed to help banks directly — “that is the sequence and it is indispensable to keep to it.”

Merkel also balked at the idea of a region-wide depositors’ insurance plan (yet another gimmick). Germany’s public-sector savings banks and cooperative banks have urged her to block it, arguing it would come at their expense.

The chancellor said she favors harmonizing deposit insurance standards, but “the question of a common deposit insurance does not arise for me, so we don’t need to discuss it at the moment.”

Police detain a protester at Atocha station during a partial national rail strike on Monday. Hundreds of Spanish train services have been canceled as rail and subway workers staged strikes to protest wage cuts and reforms (Photo: AP)

Merkel stuck firmly to her insistence that resolving the crisis will be a long-term, step-by-step progress that will ultimately require much better and closer coordination among the 17 countries that use the euro.

As Europe grows closer together, “democratic legitimation of what we do is very important,” she said.

In Germany, the supreme court already has forced the government to submit virtually all decisions in the crisis to Parliament. For Europe as whole, Merkel raised the possibility of greater coordination between countries’ Parliaments, or of setting up a group within the European Parliament representing the countries that use the euro.

Bailing out struggling eurozone countries hasn’t been popular in Germany, which has Europe’s biggest economy and funds the largest part of the rescue operations. In turn, Berlin’s recipe of spending cuts and economic reforms is unpopular in the financially weaker countries.

Merkel suggested that disenchantment with the idea of European integration can in the end be overcome by her drive to overhaul systems that haven’t worked.

“If there is criticism of Europe, that isn’t because people don’t want Europe, but because they see that there are functional weaknesses,” she said.

(AP)

The chancellor dodged questions as to whether Greece would get more time to enact reforms and repay its loans from international creditors, or more aid. Austria’s finance minister said at the weekend that Athens would get a “cost-neutral” extension.

Merkel said she wants Greece to stay in the eurozone, adding: “I think that everyone who is politically sensible will want that, too.”

She insisted that Greece must stick to its pledges to implement reforms, but otherwise pointed to a report from Athens’ international debt inspectors, expected next month, that will determine whether Athens gets a crucial next tranche of aid.

“In some cases, this is about reforms that, I think, wouldn’t bring any extra burden for the population,” she said, citing planned “organizational improvements” to the tax system and labor market.

“I don’t think it helps to revolt against measures that have to be taken anyway,” Merkel said. “And with some measures, I say that if they have to be taken, quicker is perhaps better than too slowly.”

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The Associated Press contributed to this report. Front page photo courtesy the AP.

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Comments (18)

bgotts27
Posted on September 18, 2012 at 9:20pm
Coming soon to an America near you!

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blackbean
Posted on September 18, 2012 at 2:45pm
Good for Merkel! I see that the same marxist/progressive/liberal forces are at work there as here. National soveignty only gets in the way of the power hungry tyrannts.

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katzkiner
Posted on September 18, 2012 at 10:30am
The.best.way.to rob a bank is to own one.

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Socco
Posted on September 18, 2012 at 12:47am
Your divorced friend is a fictitious character, you made up. You learned it from spam school, but guess what? you fail

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Socco
Posted on September 18, 2012 at 12:45am
Take your spam and shove it where the sun never shines.

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JEANNIEMAC
Posted on September 18, 2012 at 12:02am
One world bank = one world government = one world president

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- paulsfam4
  Posted on September 18, 2012 at 8:28am
  I know it. as stated in the Bible yes libs Bible!
  
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- pookieamos
  Posted on September 18, 2012 at 10:06am
  You are so correct . Bravo for Merckel , it seems she does not want to surrender her contries sovereignty , Bravo ! I think these globalist will find Putin won’t go for it either . Glenn showed his viewers long ago a Manuel , these people want NWO by 2020 . UN AGENDA 21 will be the end of all civilization .
  
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watersRpeople
Posted on September 17, 2012 at 8:28pm
You can tell the spirit of a nation through who becomes their leaders.

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watersRpeople
Posted on September 17, 2012 at 8:25pm
Well Angela why don’t you become the WW2 Germany it once was? Oh you can’t because your men are like girls.

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The_Jerk
Posted on September 17, 2012 at 5:12pm
The Warburg’s and Rothschild’s demand it. “Give me control of a nation’s money and I care not who makes it’s laws”

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- muffythetuffy
  Posted on September 17, 2012 at 5:26pm
  That would be an act of suicide. Europeans should all go to their town squares and slash their wrists in mass. Look what that did to the USA.
  
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freedoc
Posted on September 17, 2012 at 4:57pm
Her facial expressions, tone and words all reflect one common demoninator: I don’t like this, its bad, and is gonna end up in the total loss of German Sovereignty: I am giving up my country of producers to the parasites of the EU.

This will end badly for her, and Germany( and the rest of the world).

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- Rothbardian_in_the_Cleve
  Posted on September 17, 2012 at 5:42pm
  She’s playing a game of chance. Either Germany is eaten by the southern states or Germany conquers Europe with Banks instead of Tanks. If the other states play their part and keep the sheeple from going off the deep end, Germany will end up with coffers full of gold and political control of Europe. If the sheeple catch on the whole thing blows up in to war.
  
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Rothbardian_in_the_Cleve
Posted on September 17, 2012 at 4:52pm
The German people are sheep. They’ve been beaten down in the 20th century and so riddled with guilt that they wouldn’t dare speak up about anything. Eventually this will lead to war in Europe. There has been war in Europe for 3000 years. Some “union” is going to end that? Please.

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KevINtampa
Posted on September 17, 2012 at 4:40pm
Overton Window yet again…

Merkel isn’t against the “United Central Bank of the EU”, she’s merely against the time table. There’s already a spearhead by many nations rejecting this idea.

European nations are saying, “What!? A central bank! Give up national banking sovereignty? No way! By January, we’re doubling down on our NO WAY!”

Merkel comes in and acts like a badass moderate saying, “January is extreme! Mid to late 2013 is moderate!” Suddenly the conversation is changed. A central bank is now a moderate idea, so long as it’s time table isn’t fixed on 1st quarter 2013. Anyone opposing a EU central bank is an extremist just as much as anyone wanting a EU Federal Reserve by January 1st.

We did the same with healthcare. “Obamacare is extreme!” says Romney. Then he says, “We will repeal it but keep the stipulations on mandated coverage of pre-existing conditions, 35 year olds on their parents coverage, and some sort of package created by the private sector available to everyone in the public that I haven’t explained yet.” If you don’t believe in Obamacare, and think Romney’s compromise goes too far, you are an extremist, even though 4 years ago either one of their packages was extreme.

Overton Window

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- KevINtampa
  Posted on September 17, 2012 at 5:08pm
  Mark my words, QE3 will be debated along the same lines, and I think Romney and Obama will tact the same on this political wind. Both will likely say a QE3 is needed, however instead of an infinite amount of time assigned to QE3, there should be timetable or value cap assigned.
  
  Suddenly, another round of quantitative easing is moderate, the argument over the specifics will be where the new extremes lie. There’s no difference between the two candidates, we as a country are simply voting for who we think sells us the progressive agenda better. Who can hoodwink more people to the same ends, Obama or Romney? We’re simply picking a salesman of the same product.
  
  When Romney said in his RNC speech that he will “repeal and REPLACE Obamacare” to loud applause, what SPECIFICALLY is the package he will replace it with? I mean, I get it, people want to applause the better salesman, but doesn’t anyone want specifics or do we just want hope and change, this time directed at Romney?
  
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- Wayner
  Posted on September 17, 2012 at 5:45pm
  @Kevintampa…. Glenn is that you???
  
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