2:09:09 So bullcrap, I mean this is a Europe is the way it is because of a long history and this is a very...it's cultural. It's deeply ingrained cultural and its language base too people think a certain way largely because their language influences the way you structure your thinking Because you cannot, there are certain things that you can't think about if doesn't even exist in the language And unless you have a single language in the whole of Europe, you're not going to have an EU that works. This whole thing is a disaster! So on the 30th just a couple days ago they rammed through a new treaty
2:09:49 Just amazing how this has happened. Now we have the Lisbon Treaty, which we had a referenda, we had all kinds of voting on this you know Ireland said no, ah pfft stupid Irish do over oh there it is Ireland says yes And because they have to fire up the ESM more than a year and half early, which you heard on this show first. The European Stability Mechanism which has already been voted on by the finance ministers in July of 2011 forces every single member of the eurozone to pony up any money that is requested from Brussels. Cash call you've got to pay, there's no way out of it! There's plenty of information about this in the show notes even a great YouTube video in German with English subtitles explains exactly how it works and so what do they do? They create a new treaty
2:10:43 A brand new one all of a sudden, overnight at an informal meeting that everyone has to sign off on and must be entered into every single national constitution. Haiku Herman takes the floor in Starfleet Command and explains... well we're sorry but we gotta screw you! This treaty must be seen as just one element of the reforms to economic governance Economic governance, ladies and gentlemen. Not financial economic governance! Send your tax money to Brussels We have achieved over the last two years reforms which involve both responsibility and solidarity And which include the six-pack which remains the backbone of our new governance architecture This treaty is about more responsibility and better surveillance
2:11:33 Surveillance. Every country that signs it commits to bringing in a debt break into its legislation. You hear? A debt break, he said dead but I think he meant debt break into its own legislation. Preferably at constitutional level. Boo! And by the way the document in The Show Notes you'll find the draft treaty January 27th PDF 3% if you don't, if you can't keep your debt under three percent the fine is 0.2 % of GDP for the first fine that's a lot of money an automatic correction mechanism will reinforce compliance Reinforce compliance automatically and shining the debt break in the treaty will enhance its credibility This important as a confidence building measure
2:12:24 It represents a major step forward towards closer and irrevocable fiscal and economic integration, and stronger governance in the euro area. Irrevocable? It will significantly bolster the outlook for fiscal sustainability and euro-area sovereign debt, and therefore enhance economic growth. Placing this commitment to self-control in the treaty shows our long term and irreversible commitment to avoiding excessive deficits and debts. So, this is basically all language meant for hedge funds and bankers he's saying you can trust us really you can trust us we've got them all they're signing off on this thing We got the thumbscrews on And they have to pay
2:13:08 They have to pay at constitutional level. It will be absolutely ingrained, embedded in law. Don't worry! Send us your money no problem!" And then he continues... Like most members of the European Council and like the European Parliament I would have preferred these issues to be addressed by changing existing treaties rather than through a separate treaty. But it was so much more fun to draft up something that no one got to vote on just how we got here in the first place As you know, the necessary unanimity for this was not forthcoming There was no choice So not everyone wanted to be on board but we forced them That's what that means But to go down this route
2:13:46 But in doing so, I was personally determined to keep the new provisions as close as possible to the EU treaties. Except for that money thing! We were not setting up a separate organization but the means of reinforcing our union and had endeavored in the same way when setting up the Euro Plus Pact. I hope that our successors will succeed in integrating this treaty into the EU treaties. Screwed Hmm. That's interesting, that's a good one! John is like... hmmm let me think what not so good that going on over there? No this is headed to disaster these guys are just out of control Well you thought we had some kind of patent on idiots running the show? Nah they're worse than we are The hero