Sovereignty and the IMF - An Issue Beyond Ireland

consultant

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Strauss-Kahn, the Managing Director of the IMF, wants member states to cede more sovereignty to a central entity.

Basically, we would hand over responsibility not only for fiscal matters but for structural too.

In what are likely to prove controversial proposals, Dominique Strauss-Kahn, the IMF managing director, called on the European Union to move responsibility for fiscal discipline and structural reform to a central body that is free from the influences of member states.

In a speech in Frankfurt addressing the sovereign debt crisis engulfing Europe once again, he said: “The wheels of co-operation move too slowly. The centre must seize the initiative in all areas key to reaching the common destiny of the union, especially in financial, economic and social policy. Countries must be willing to cede more authority to the centre.”

Europe is plagued by crisis because member states put too much faith in banks and let their public finances run out of control. Greece has already been bailed out and Ireland is expected to agree a €100bn (£85bn) rescue within days. Portugal is also at risk.

IMF chief Dominique Strauss-Kahn urges leaders to cede more sovereignty to EU - Telegraph

It took us two referenda and millions of euro to accept the Lisbon Treaty. Now it looks as though lying is not unique to FF and the greens, the other main parties recommended acceptance and promised no impact on soverignty as well.

In the meantime, and as an aside, our politicians really have their priorities right. The country is in crisis, we are crawling with IMF, EU and ECB mafiosi types and Cowen takes time out to open an airport building then he and everyone else goes to Donegal to influence a bye-election. Even Donegal can't be allowed exercise local sovereignty, it seems, and making sure it doesn't is more important than the fate of our people.
 


consultant

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In fact, is central control the only viable option for the Eurozone?


From the Washington Post:

Cowen's problems underscore concerns that political turmoil could further cloud the fortunes of a number of European countries, whose frail economies and whopping budget deficits are threatening to ignite another debt crisis.

Fears of political instability have subsided in hard-hit Greece, as well as in Spain, where Socialist governments have solidified their power and resisted general strikes, emerging as surprisingly aggressive cost-cutters.

But concerns are festering elsewhere. In Italy, for instance, the many scandals of Prime Minister Silvio Berlusconi have left him fighting for his political life just as his government is trying to push through an austerity budget considered pivotal to easing investors' minds.

In Portugal, which European officials say may be next in line for an international bailout, the minority government in Lisbon survived a key vote on the tight 2011 budget this month. But Foreign Minister Luis Amado warned last weekend that its failure to secure a broader governing coalition could jeopardize its ability to push through deeper cuts and could result in Portugal's ejection from the euro.

"That is a situation that could inevitably be forced upon us by the markets," he told the Expresso newspaper in Lisbon.
Ireland may be facing political crisis in addition to economic woes
 


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