After reading a recent blog it seems that the European authorities have a plan. They have produced a report that includes:
- The eurozone borrowing money collectively “could be explored”
- A European treasury office to be set up to control a central budget and keep an eye on national ones
- A single European banking regulator and a common scheme guaranteeing bank deposits
- Common policies on employment regulations and levels of taxation
The wording is diplomatic. It will move much of the financial decision making to Brussels, and in principle is a good solution. That it’s being proposed by the Eurogroup’s Herman Van Rompuy and Jose Manuel Barroso, whose powers will grow exponentially, if the plan is adopted, may bring it’s motives into question and is something that the politicians will sieze on.
You can be sure that of the politicians, whose powers will be similarly diminished, will not raise that as the issue. Their contention will be that it is “an encroachment on our sovereignty”.
Hamilton predicted much of this over two hundred years ago.