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Total Authority: EU ‘Gang of Four’ Seeks Power to Control Other Countries’ Budgets

BRUSSELS (The Blaze/AP) — Top European officials have called for countries that use the euro to grant an international authority the power to demand changes to their national budgets, as part of a grand vision to save the currency and strengthen the union.

Translation: EU authorities have proposed that governments in the 17-nation union surrender control of their budgets to a central authority.

The plan published Tuesday on the European Council website was drawn up by the “gang of four” European presidents: Council President Herman Van Rompuy, European Commission President Jose Manuel Barroso, Eurogroup President Jean-Claude Juncker and European Central Bank President Mario Draghi.

Total Authority: EU Gang of Four Unveils Master Plan to Save EurozoneEurogroup President Jean-Claude Juncker, ECB President Mario Draghi, EU Commission President Jose Manuel Barroso, & Council President Herman Van Rompuy

The four officials’ proposal appears aimed at encouraging Germany to accept closer fiscal integration, such as jointly issued eurobonds, which would supposedly spread debt risk across the eurozone and lower the risk of individual states needing a bailout. Germany opposes a quick adoption of eurobonds because it would expose Berlin to more potential costs and reduce incentives for weaker states to fix their finances.

The EU president argue that central control over those finance policies may reduce Germany’s fears.

“Greater pooling of decision-making on budgets … (and) effective mechanisms to prevent and correct unsustainable fiscal policies in each member state are essential,” they wrote in the report to be debated at a summit of EU leaders Thursday and Friday.

“Toward this end, upper limits on the annual budget balance and on government debt levels of individual member states could be agreed in common,” the report adds.

If a country were to flout budget rules “the euro area level would be in a position to require changes.”

It is not clear how much appetite eurozone governments have for surrendering further control over their budgets to Brussels, although all agreed to abide by a 3 percent deficit limit when they joined the single currency.

The plan proposes a “medium term” move towards eurobonds, an initiative opposed by German Chancellor Angela Merkel, as well as creating a banking union with a single authority that would insure banking deposits and have the power to shut or recapitalize banks directly, with help from Europe’s permanent bailout fund.

Just stop and think about this for a moment: the “gang of four” has proposed a plan that involves eurozone governments surrendering control of their budgets to an entity that has the power to close down or bailout any bank. What could possibly go wrong?

Total Authority: EU Gang of Four Unveils Master Plan to Save EurozoneThe Reichstag building, house of German parliament Bundestag in Berlin. German parliament will vote on the European Stability Mechanism, ESM, and the EU fiscal compact on Friday, June 29. (AP Photo/Markus Schreiber)

For all the obvious reasons, Germany’s deputy foreign minister quickly dismissed the eurobond idea.

“By beginning with pooling of debt, we’re heading toward a dead end,” Michael Link said in Luxembourg, repeating a sentiment often expressed by Chancellor Angela Merkel.

The document is long on vision but short on detail, especially measures to address short-term stresses that are threatening to shatter the single currency.

“Standing still is not an option,” Barroso told reporters Tuesday, discussing the plan. “A big leap forward is now necessary.”

At the end of the report, Van Rompuy volunteered to develop a “specific and time-bound roadmap for the achievement of the genuine economic and monetary union” by December.

The Associated Press contributed to this report.

Comments (74)

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  • Plan B
    Posted on June 26, 2012 at 2:32pm

    Talk about power grab. Read the article about O’s Truth Team at www. homeland security us. com. I was floored.

    Report Post »  
    • theblazerunner
      Posted on June 26, 2012 at 3:20pm

      aye, nice info thanks

      Report Post » theblazerunner  
    • GETLIFE
      Posted on June 26, 2012 at 4:05pm

      Yeah… forgiving outstanding debts and showering Greece with new mega loans didn’t work…. why not pool the debt…. yeah.

      Report Post » GETLIFE  
    • Walkabout
      Posted on June 26, 2012 at 4:18pm

      The Eurobond plan was first floated by the newly elected socialist president of France. It is just another way of printing money & letting later generations pay for benefits that socialist politicians disperse to get re-elected so they can live their champagne lives.

      Add you own expletives as appropriate in above paragraph.

      Report Post »  
    • mike_trivisonno
      Posted on June 26, 2012 at 4:20pm

      Herman Van Rompuy is one of the most evil men on the planet.

      Report Post » mike_trivisonno  
    • Chrischan74
      Posted on June 27, 2012 at 2:58am

      @ Walkabout:
      No, not true. Hollande was finally elected on 6th of Mai 2012. The idea to steal the German taxpayers money to pay the debt of incapable countries known as the P.I.I.G.S.-States (Portugal, Ireland, Italy, Greece and Spain) was borught up by Jean-Claude Juncker, Head of the Eurogroup and Guilo Tremonti, the italian minister of Finance and Economics.

      Report Post »  
    • nzkiwi
      Posted on June 27, 2012 at 3:56am

      Indeed he is.

      Here is Nigel Farage handing von Rumpoy and Barosso their heads of a plate during a European parliament debate. Fun to watch.

      http://www.youtube.com/watch?v=2gm9q8uabTs

      Report Post »  
    • nzkiwi
      Posted on June 27, 2012 at 3:57am

      That was meant for Mike, sorry.

      Report Post »  
    • Longinthetooth
      Posted on June 27, 2012 at 8:42am

      Shun Evil Counsel

      10) My son, if sinners entice you,
      Do not consent.
      11) If they say’ Come with us,
      Let us lie in wait to shed blood;
      Let us lurk secretly for the innocent without cause;
      12) Let us swallow them alive like Sheol,
      and whole, like those who go down to the Pit;
      13) We shall find all kinds of precious possesions,
      We shall fill our houses with spoil;
      14) Cast in your lot among us,
      Let us all have one purse”——–
      15) My son, do not walk in the way with them,
      Keep your foot from the path;
      16) For their feet run to evil,
      And they haste to shed blod.
      17) Surely, in vain the net is spread
      In the sight of any bird;
      18) But they lie in wait for their OWN blood,
      They lurk secretly for their OWN lives.
      19) So are the ways of everyone who is greedy for gain;
      It takes the life away from its owners.

      Proverbs (as noted)

      “Man is only ruled by his own consent.
      Whether by virtue
      Or by lies deceit and deception…Either his own or by others.”

      “Cut the head from the snake and the body will die”

      Ron Paul 2012 — End the Fed

      Report Post »  
  • Thighmaster
    Posted on June 26, 2012 at 2:26pm

    I hate to be a fly in the ointment but if these four ate so good why can’t they start by fixing their own countries before helping others. Oops, did I say that out loud ?

    Report Post » Thighmaster  
    • GETLIFE
      Posted on June 26, 2012 at 3:45pm

      Because they are insisting that solutions can only come from above, and they are “above.” Europe is skroood. Socialist oligarchies replaced the kings. The next step is really not all that different from either.

      Report Post » GETLIFE  
  • SamIamTwo
    Posted on June 26, 2012 at 2:22pm

    And we have the Jubilee act waiting in the wings of Congress…jubilee act passed congress in 2009 and got tabled. That puppy has a lot of dust on it.

    Biblical, sounding…but I do not support it.

    Report Post » SamIamTwo  
  • HKS
    Posted on June 26, 2012 at 2:20pm

    Wow, takeover a country and not fire a shot, Soros has to have something to do with this,

    Report Post » HKS  
    • nzkiwi
      Posted on June 27, 2012 at 4:00am

      Yes, countries like yours and mine would laugh these guys out of the room. Most in the UK desperately want to be shot of the EU.

      I think that eventually the Euro will collapse and take the Union with it. And then Europe will be a happier place, even if substantially poorer for the experience.

      Report Post »  
  • shorelineliz
    Posted on June 26, 2012 at 2:19pm

    Put these guys on the same “austerity” they want for others. Take their fancy cars, houses, gazillion dollar accounts, expense accounts, and give it to the poor. They can eat beans. and explode. for all I care. Just robber barons. awful looking men!

    Report Post »  
    • Walkabout
      Posted on June 26, 2012 at 4:09pm

      How come these guys all speak Romance languages, French, Italian & Spanish? None of these countries have sustainable governments. A person might argue that France does, but I beg to differ. France floated its‘ prosperity by devaluing its’ currency, the Frank, in the pre-Euro days.

      With a socialist president, who went to one of the 2 premiere schools in France, I don’t think anyone has told him that his ideals stink. I look for riots that make the news in about 18 months.

      Report Post »  
  • mcsledge
    Posted on June 26, 2012 at 2:13pm

    Sounds like the makings of a one world government.

    Report Post » mcsledge  
    • michael48
      Posted on June 26, 2012 at 2:22pm

      or to big to fail…to the rescue, chairman ocommie…with OUR money…Make the EU give back the Trillions from the Marshall Plan…no paying bunch of morons!!!!

      Report Post »  
    • nzkiwi
      Posted on June 27, 2012 at 4:04am

      It would seem like that, McSledge, except they can’t even manage the bit of the world that they currently have.

      We have nothing to fear from these guys. Some will be in jail before the decade is out.

      Report Post »  
  • Maxim Crux
    Posted on June 26, 2012 at 2:13pm

    Germany is in the driver seat. This is propaganda to make people believe that Germany is some kind of victim…nonsense. They are the ones who are drawing up the agreements and conditions in which other countries must agree to before they give them the money.

    Report Post »  
  • Lord_Frostwind
    Posted on June 26, 2012 at 2:09pm

    Don’t fall for it Germany! These are the same idiots who didn’t see the crisis until it punched them in the face and now they want to have extralegal control over your finances. You might as well dump your national treasury in the Rhine, it would probably be a safer investment.

    Report Post » Lord_Frostwind  
    • Cavallo
      Posted on June 26, 2012 at 2:19pm

      Maybe we American’s should start just refering to all of them as Europeans. When they say, no, I’m German, ask them what the difference is between a Frenchman and a German.

      Report Post » Cavallo  
    • barber2
      Posted on June 26, 2012 at 2:34pm

      Yes. And their American idiot friends, our Democrats, are spending America into the same economic catastrophe. The dysfunctional Blame – Game mentality types can not be helped. They just aren’t capable of making that mental leap !

      Report Post »  
  • NSDQ
    Posted on June 26, 2012 at 2:06pm

    Behold The Four Horseman ..

    Report Post » NSDQ  
    • skaulr
      Posted on June 26, 2012 at 3:28pm

      I think it closer to this:
      “And of the ten horns that were on its head, and of the other which came up, and before which three fell; even of that horn that had eyes, and a mouth that spoke very great things, whose look was greater than its fellows. I beheld, and the same horn made war with the saints, and prevailed against them; Until the Ancient of days came, and judgment was given to the saints of the most High; and the time came that the saints possessed the kingdom.” (Dan 7:20-22)

      Report Post »  
  • IMCHRISTIAN
    Posted on June 26, 2012 at 2:06pm

    What a stupid thing to want others to do. If you can‘t handle your own economy don’t expect others to let you handle theirs. Either way it is a stupid thing to request and even stupider for other Countries to think or even do it.

    Report Post »  
  • Alan
    Posted on June 26, 2012 at 2:05pm

    All these four know-it-all socialists will do is make Germany as poor as Greece, they won’t fix a thing.

    Report Post »  
    • progressiveslayer
      Posted on June 26, 2012 at 2:13pm

      That’s what socialists do,spread the misery around so everyone can enjoy it.Ole Soros says Europe will collapse in a few months and he’s probably correct.

      Report Post » progressiveslayer  
  • Shasta
    Posted on June 26, 2012 at 2:04pm

    Soros in action!

    Report Post » Shasta  
  • GrumpyCat
    Posted on June 26, 2012 at 2:03pm

    Why are they resisting? This is the natural direction of the path they have been following.

    Report Post »  
  • Thighmaster
    Posted on June 26, 2012 at 1:58pm

    OK isn’t this the part in the movie where the underground resistance goes (where else? ) underground and only comes out at night to steal food and supplies and sabotages government operations while picking up stray resistance and in the end restores order to the world ? Sign me up….

    Report Post » Thighmaster  
  • 762x51
    Posted on June 26, 2012 at 1:44pm

    Anybody want to bet that George Soros will have his greasy mitts in the “central authority” that controls EU member nations budgets?

    Report Post »  
  • frust@ted
    Posted on June 26, 2012 at 1:42pm

    Not suprised by this. If the Federal Govmt bails out any states don’t you think that the states that bail out the failed state will want some controll over their budget.

    It’s going to get really messy here in the States if California Fails, State Govmt wrokers are going to turn on eachother and their will be infighting in the democratic party. Why would a Teacher in lets say Georgia who gets less in benifits and pay want to bail out a system in a different state like California where teachers get superior benifit.

    Report Post »  
  • Truth and Justice
    Posted on June 26, 2012 at 1:38pm

    One World Government– Here we come!!!! Wake up Sheeple!!!

    Report Post »  
    • frust@ted
      Posted on June 26, 2012 at 1:46pm

      First step for us will be erasing any idea that States have any sovereignty then they will go for the 1 world Govmt. The first step to losing state sovereignty will be when states like California start to fail and citizens in other states are forced to bail them out. Their will be a panic or emergency and the federal govmt will have to pass a law that gives the Federal Govmt the power to control other states budgets. Once they control the money you won’t be able to stand against them.

      Report Post »  
    • Cavallo
      Posted on June 26, 2012 at 2:11pm

      I think Germany sees the writing on the wall with this one. Which is: “We’ll work, and you get our money. ” I have a feeling that the EU will likely break up before something like that, but who knows, maybe Germany is considering suicide?

      Report Post » Cavallo  
  • Amy
    Posted on June 26, 2012 at 1:38pm

    The rich get richer and the poor get poorer

    While the rest of us just get bigger ’round the middle.

    Report Post » Amy  
    • Plan B
      Posted on June 26, 2012 at 2:13pm

      Exactly!
      Warren Buffett once said that derivatives are “financial weapons of mass destruction”, and that statement is more true today than it ever has been before. Recently, JP Morgan made national headlines when it announced that it was going to take a 2 billion dollar loss from derivatives trades gone bad. Well, it turns out that JP Morgan did not tell us the whole truth. As you will see later in this article, most analysts are estimating that the losses will eventually be far larger than 2 billion dollars. But no matter how bad things get for JP Morgan, it will not be allowed to fail. JP Morgan is the largest bank in the United States, so it is essentially the “granddaddy” of the too big to fail banks. If JP Morgan gets to the point where it is about to collapse, the U.S. government and the Federal Reserve will rush in to save it. Because of this “security blanket”, banks such as JP Morgan feel free to take outrageous risks. Today, JP Morgan has more exposure to derivatives than anyone else in the world. If they win, they win big. If they lose, U.S. taxpayers will be on the hook. Not only that, but thanks to Dodd-Frank, U.S. taxpayers are on the hook for bailing out the major derivatives clearinghouses if there is ever a major derivatives crisis. So when the derivatives market crashes (and it will) you and I will be left holding a gigantic bill.

      Report Post »  
    • lukerw
      Posted on June 26, 2012 at 2:50pm

      BS! The LBJ War on Poverty, spending Trillions over Administrations, has resulted in the Same Percentage of people in Poverty. Check Rush Limbaugh, today!

      Report Post » lukerw  
    • lukerw
      Posted on June 26, 2012 at 2:56pm

      @PLANB
      George Washington told the Nation; DO NOT GET INVOLVED IN FOREIGN AFFAIRS!

      Report Post » lukerw  
  • JUSTANOTHEROPINION
    Posted on June 26, 2012 at 1:37pm

    The people of the World will never learn. Re-elect Obama and we’ll be there too.

    Report Post »  
  • lukerw
    Posted on June 26, 2012 at 1:34pm

    OF COURSE! A Money Printing Press… demands a Federal Government for Control… where if a Member Sovereign State goes Bankrupt… the Debt Payment becomes a claim to Ownership… in the Tradition of Emperors who owned Estates (Count-doms) & Castles (Cities)… wherein the people were Serfs & Slaves!

    Alike France under Napoleon… the EU is transistioning from Republic to Empire!

    Report Post » lukerw  
  • jackact
    Posted on June 26, 2012 at 1:34pm

    Europe is yesterday’s news….
    The Blaze does not feature one single story on the major conservative victory upheld by the supreme court in Arizona yesterday.
    You’re slipping Beck.
    And you are severly underestimating the intelligence of your audience.
    Wake up your contributors and tell them to grow a pair!

    Report Post »  
  • Steven63
    Posted on June 26, 2012 at 1:32pm

    this is a step towards one world government which, of course, has been the plan for a long time. With that understanding, one could reasonably ask whether the crisis of the last 4 years was manufactured to bring about this ‘opportunity.’

    Things will have to get much worse before Germany will agree to take on the debts of the other member nations – it IS primarily Germany that would have to fund their largess. AND it will get much worse. That is as plain as day to see.

    Will the people of Germany and France resign to funding (being taxed) for the betterment of say, Greece? Which already has a retirement age much lower than that of the funding states? I hope not.

    Report Post »  
  • contkmi
    Posted on June 26, 2012 at 1:31pm

    Anybody with half a brain could see something like this happening. Which is why most of the EU socialists didn’t see it coming.

    Report Post » contkmi  
  • Popp40
    Posted on June 26, 2012 at 1:27pm

    Just one more step closer to that ONE WORLD GOVERNMENT….

    Report Post »  
  • Gonzo
    Posted on June 26, 2012 at 1:25pm

    Proverbs 22:7 Just as the rich rule the poor, so the borrower is servant to the lender.

    Report Post » Gonzo  
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