10 countries for a United States of Europe

Ten EU foreign ministers participating in a “study group for the future of Europe” aim to exert pressure to transform the EU into a federation along the lines of the US. Together they have prepared what the front-page headline in Die Presse describes as a “Plan for transformation into a European state.” On 19 June, the ten ministers* presented an initial report to the EU officials who will likely benefit the most from the initiative: Commission President José Manuel Barroso, European Council President Herman Van Rompuy, European Central Bank President Mario Draghi and Eurogroup President Jean-Claude Juncker.

The “study group for the future” initiated by Germany's Guido Westerwelle, which does not currently include an official French representative, proposes to put an end to the dominance of national government leaders and give greater authority to the European Commission – in particular the European Commission president, who will be elected by universal suffrage and granted the right to form a “governmental team”, making him or her the most powerful politician in Europe.

The group also recommends replacing European councils of ministers and heads of state with a chamber “of states” in the European parliament. National competencies, most notably the management of borders, defence and public spending will be transferred to the federation, “making membership of the euro irreversible.”

Die Presse argues that it is not surprising to see diplomats from countries which have lost all of their influence since the Treaty of Nice, signed in 2001, and even more so since the outbreak of the crisis, make a bid to play a more important role. However, the daily concludes –

A clearly defined democratic system resembling a state would probably not be in accord with the mood of several sections of the population. But everyone who wants to safeguard the euro, the single market and political stability, while preventing a widening wealth gap between the North and the South and a reinforcement of nationalist trends will ultimately accept that it is the best way forward.


* Foreign ministers from Germany, Austria, Belgium, Denmark, Italy, Luxembourg, the Netherlands, Poland, Portugal and Spain.

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WHAT DOES THE BIBLE SAY OF THE END TIME BEAST: -
The beast, which you saw, once was, now is not, and will come up out of the Abyss and go to his destruction. The inhabitants of the earth whose names have not been written in the book of life from the creation of the world will be astonished when they see the beast, because he once was, now is not, and yet will come. This calls for a mind with wisdom. The seven heads are seven mountains on which the woman sits. They are also seven kings. Five have fallen, one is, the other has not yet come; but when he does come, he must remain for a little while. The beast who once was, and now is not, is an eighth king. He belongs to the seven and is going to his destruction. The ten horns you saw are ten kings who have not yet received a kingdom, but who for one hour will receive authority as kings along with the beast. They have one purpose and will give their power and authority to the beast. …The beast and the ten horns you saw will hate the prostitute. They will bring her to ruin and leave her naked; they will eat her flesh and burn her with fire (Revelation 17:3-16).

EU planning for worst-case scenario in case of Greek eurozone exit

By Luke Baker, Reuters

BRUSSELS – European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen — no one Reuters has spoken to expects Greece to leave the single currency area.

Belgium’s finance minister, Steve Vanackere, said at the end of May that it was a basic function of each eurozone member state to be prepared for problems. These discussions appear to be in that vein.s

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said.

The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of eurozone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

“Contingency planning is underway for a scenario under which Greece leaves,” one of the sources, who has been involved in the conference calls, said. “Limited cash withdrawals from ATMs and limited movement of capital have been considered and analyzed.”

Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.

“These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality,” the second source said. “It is sensible planning, that is all, planning for the worst-case scenario.”

The first official said it was still being examined whether there was a legal basis for such extreme measures.

“The Bank of Greece is not aware of any such plans,” a central bank spokesman in Athens told Reuters when asked about the sources’ comments.

The vast majority of Greeks — some surveys have indicated 75 to 80% — like the euro and want to retain the currency, something Greek politicians are aware of and which may dissuade them from pushing the country too close to the brink.

However, SYRIZA is expected to win or come a strong second on June 17. Alexis Tsipras, the party’s 37-year-old leader, has said he plans to tear up or heavily renegotiate the 130-billion-euro bailout agreed with the EU and IMF. The EU and IMF have said they are not prepared to renegotiate.

If those differences cannot be resolved, the threat of the country leaving or being forced out of the euro will remain, and hence the need for contingencies to be in place.

Switzerland said last month it was considering introducing capital controls if the euro falls apart.
In a conference call on May 21, the Eurogroup Working Group told eurozone member states that they should each have a plan in place if Greece were to leave the currency.

Belgium’s Vanackere said two days after that call that it was a basic function of each euro zone member state to be prepared for any eventuality.

“All the contingency plans (for Greece) come back to the same thing: to be responsible as a government is to foresee even what you hope to avoid,” he told reporters.

“We must insist on efforts to avoid an exit scenario but that doesn’t mean we are not preparing for eventualities.”