Monday, June 29, 2015

Bill Mitchell — European Court of Justice effectively rules that Eurozone is a shambles

Bill looks at the law and EZ internal politics (power structure).

Cutting to the chase:
The fact that the ECB joined the Troika, which included the IMF, a non-European, non-elected, non-accountable organisation, is evidence of how far removed from a democratically-organised federation the Eurozone is.
I have no doubt that the ECB is acting as a fiscal authority, which the European Treaties explicitly banned. The fact that the European Court of Justice has conveniently overlooked the aberrant behaviour by the ECB, is like all things Eurozone, ad hoc.
Everyone knows that if the Bundesbank was to get its way, the Eurozone would have collapsed long ago. So the officials work at the margins to keep their ugly system alive and the European Court of Justice conveniently plays along to allow them to do that – while the elephant in the room – the lack of a true fiscal authority at the federal level – stomps on millions of unemployed and pensioners, and, in the case of Greece, destroys the viability of a nation.
Some time in the future, humanity will look back on this period as a Dark Age overseen by megalomaniacs parading as the Eurogroup or the IMF etc. All pushing the neo-liberal Groupthink and denying reality.
The European Court of Justice ratification of the ECB behaviour tells us that democracy is dying in the Eurozone as currently constituted and enforced by the Troika....
When we read the statements by the Dutch head of the Eurogroup Jeroen Dijsselbloem that the Eurogroup is an “informal body” which can decide what it likes, we know that democracy is in danger in Europe. Especially, when the Eurogroup takes instructions from the IMF....
Bill Mitchell – billy blog
European Court of Justice effectively rules that Eurozone is a shambles
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

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