Last Friday an important meeting took place in Brussels where the major points of a “new EU” were put on the table.
“The five major points adopted Thursday night include:
- Automatic sanctions for any state which passes a 3% deficit ceiling (though the amount of the sanctions was not fixed). The only exception is if a majority of member states oppose these sanctions.
- A golden rule for all EU nations (stating that a nation’s deficit should not surpass 0.5% of its GDP), an increase in bailout funds. It will be up to the Court of Justice of the European Union to keep a watchful eye on the national budgets.
- An increase in bailout funds for struggling nations. A new fund of €200 billion will be given to the IMF to make sure that it has “the necessary resources” for dealing with the crisis. This money will be released from the European Central Bank, though its president, Mario Draghi, declared that he was against the measure (as, according to “European treaties,” the Bank should not finance national debts.)
- An end to decision-making by unanimous votes (from now on, decisions will be made by 85% majority; though France, Germany and Italy will still have veto power because they have more than 15% of votes each.)
- The private sector will no longer be roped in to cases of debt restructuring (this was the case with Greece.) This last measure is meant to incite investors to lend to nations in difficulty.”
Source: (“Le Figaro”) (22)
It was clear that there would have some disagreements and the discussion was open. The papers and politicians took for granted that the Prime Minister David Cameron was going to be reticent to these measures but the question was; how far would he go? And; how many countries would join his claims?
David Cameron demanded in the meeting a series of lifeguards to protect Britain, according to “The Guardian” the demands were:
• Any transfer of power from a national regulator to an EU regulator on financial services would be subject to a veto.
• Banks should face a higher capital requirement.
• The European Banking Authority should remain in London. There were suggestions that it might be consolidated in the European Security and Markets Authority in Paris.
• The European Central Bank be rebuffed in its attempts to rule that euro-denominated transactions take place within the eurozone. (23)
The 17 countries which has the Euro as a currency agreed immediately, while the other showed hesitation. At last 26 out of 27 agreed, David Cameron was the only one who rejected completely the agreement.
Then the headlines of the papers and the articles popped up as fast as the internet can work.
“The Spiegel”– “Bye Bye Britain: The European Union’s New Face” Where we can read some hard words towards Britain as “standing petulantly alone”; and finish the article with a paragraph called “Europe Can Work Fine Without British”. (24)
“The Guardian”– “The two-speed Europe is here, with UK alone in the slow lane” Where we can read some criticism towards David Cameron as: “The result is that Europe is advancing towards its integrated destiny, with Britain in its rear-view mirror. The two-speed Europe has arrived, with Britain in a slow lane of one. Whatever the letter of the rules, the reality is that big decisions affecting Britain’s economy will now be taken in rooms in which Britain is not present and has no say. Soon, foreign-owned banks may wonder what sense it makes to be based in London, out on the margins. Cameron and his party are toasting what feels like a victory. In time, it may come to taste like defeat.” This article ends with a funny future showing Britain as “The new Switzerland” (25)
“The New York Times”– “German Vision Prevails as Leaders Agree on Fiscal Pact” Where the role of Angela Merkel and Nikolas Sarkozy are presented as strong leaders, who are concern about the EU future and fight for it against the stubbornness of David Cameron. “I am sick of hearing every day David criticizing us,” Mr. Sarkozy said, according to one official briefed on the discussions.”
“It’s a turning point,” said one senior European official. “Britain kept thinking that enlargement of the E.U. would make it come its way but it has turned out to weaken us.”
The official spoke with some sadness. “By being so isolated and raising these issues, but failing to deliver, Cameron is in a worse position than if he hadn’t flagged them in the first place. It will strengthen the hand of British euroskeptics who will be emboldened to demand a renegotiation of British membership terms and a referendum.” (26)
After all no
t all the voices are claiming against David Cameron, some are in favor claiming more “bulldog spirit” in re ference to Winston Churchill’s strength. (27)
So, we are facing a “new era” for the EU, leaded by Germany and France where the members must lose some of their independency to get “more Europe” as Angela Merkel is always claiming.