Brussels takes control of taxation and spending in eurozone countries

So what is this going to mean? Is the EU now being given extraordinary powers to control indebted eurozone countries? Is this developing into a much wider United States of Europe, or an European superstate ? One that will have a 'budget commissioner' with powers to veto tax and spending plans? The whole situation looks eerily like it's growing into a Frankenstein.


UK Telegraph

The European Union is to gain dramatic powers to control tax and spending in crisis-hit eurozone countries under a deal to save the currency.

The EU will have to agree the national budgets of heavily indebted countries under a deal to be signed tomorrow at a summit in Brussels attended by David Cameron.

The move will mean Greece losing control over its own budget, after Germany and the International Monetary Fund laid down increasingly harsh conditions for the indebted nation to receive its second £100 billion eurozone bail-out.

With the country on the brink of default, Christine Lagarde, the managing director of the IMF, yesterday revealed thata “fiscal compact” was set to be signed by European Union leaders at their summit tomorrow.

The move to closer integration between the eurozone economies comes just days before Tory Euro-sceptics launch a campaign to repatriate powers over policing and justice already handed to the European Union.

Conservative MPs will put pressure on the Prime Minister to harness a “block opt-out” that will allow Britain simultaneously to withdraw from European Arrest Warrants, compulsory sharing of data with other police forces, and more than 100 other laws handed to Brussels.

They will be angered by the EU’s new powers over eurozone countries, which will see institutions paid for by all of Europe’s taxpayers concentrating more of their staff and resources on members within the zone.

Euro-sceptics also strongly oppose harmonisation of taxes. But global leaders see closer integration of the eurozone economies as the only answer to the ongoing debt crisis.

Mrs Lagarde, speaking at the World Economic Forum in Davos, said: “In addition to having a monetary zone, the eurozone needs to develop this fiscal consolidation compact that is currently under work and that we hope will be validated on Monday at the leaders summit.”

A leaked EU document revealed German plans for Greece to agree all its spending plans with a eurozone “budget commissioner”, who would have the power to veto tax and spending plans.

i purchase products from many differant EU countries and none of them want to go through the hassle to have me pay invoices in USD. i'm sure that will change once the dollar gets stronger.

Any idea what kind of department and resources will be behind the budget commissioner?

Managing a national budget is no easy task and if it is just one man reading some line items it is not going to end well. There does appear to be some risk and fear that the hatchet man will be let loose on Greece cutting back social infrastructure and services. Applying oversight is a great way to cut out any corruption and waste that is occurring within the Greece government, but it does take a lot of resources and work to be effective. Is there any indication of what directives the budget commissioner will be provided when it comes to applying his power?

reply to post by surrealist


Go Germany Go!

Taken over Europe with paper rather than guns this time around, and the morons agree to it with smiles on their face. That's Germany ingenuity.

Seriously though: Destroy the EU now while it's easy .. or see your countries sovereignty ended for good.