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Entries Tagged as 'EU'

Why Cameron’s EU Veto Made Sense

December 16th, 2011 at 1:32 pm 4 Comments

Last week in Brussels, the United Kingdom for the first time in a long time refused to be dictated to by continental elites. David Cameron, under enormous pressure from the Commission, other “core” Union members, and the (then) sotto voce pro-Europe disposition of his LibDem coalition members, refused to agree to the “fiscal compact” to include all 27 member states. By doing so, he has shaped the battlefield over all financial regulation in the Union, which remains very much in play, and very important to the British financial industry.

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The UK’s Future in Europe Looks Very Swiss

December 14th, 2011 at 2:37 pm 7 Comments

Despite what the sensational media coverage might suggest, EU-UK relations did not experience a watershed moment last week.

The EU has indeed become a two-tier organization but the divide has not occurred between the UK and Europe but between the Northern “fiscal hawks” and the slump European South, which has dragged the EU into its financial turmoil.

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A Permanent EU “Crisis”?

December 8th, 2011 at 4:44 pm 4 Comments

On December 7th, French President Nicolas Sarkozy and German Chancellor Angela Merkel presented a  letter to the European Council President Herman Van Rompuy with their proposals for how to solve the current EU crisis. Except their letter was not really a proposal, in that it did not consist of a draft treaty amendment but only broad principles.

But it is clear that the plan they have in mind is creating a state of perpetual “crisis” — and permanent powers to deal with it — inside the eurozone and any other non-euro countries that would be bafflingly inclined to join it.

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The EU’s New Budget Motto: “Mother May I?”

December 7th, 2011 at 4:00 pm 2 Comments

European Council President Herman Van Rompuy has just floated a proposal to subject all EU members – not just eurozone members – to more rigorous budget scrutiny by Union organs. The proposal is so contrary to the Union treaties and its scope so overreaching to the current eurozone debt crisis that it is doomed to fail.

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Will Europe Adopt Sikorski’s Plan?

December 7th, 2011 at 8:32 am 2 Comments

Is the “European Endgame” upon us? The tone has certainly intensified ever since the Polish Foreign Minister Radoslaw Sikorski stirred some fervor with his Berlin speech, which pointed many fingers yet put many viable solutions on the table.

Sikorski’s comments on the EU’s lack of financial discipline were echoed later that week by Jacques Delors, President of the European Commission from 1985 to 1995. Frum Forum reported on Delors interview with the British Telegraph.

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One Continent, Under France and Germany

December 7th, 2011 at 12:00 am 7 Comments

Looks like the EU has found an alternative to German domination of everybody else. It’s French-German domination of everybody else.

The grand “deal” announced earlier this week has something for both France and Germany. For the Germans, France will temporarily stop talking about eurobonds and will agree to automatic sanctions for violation of new budget rules. For the French, those automatic sanctions can be cancelled by a supermajority vote of unknown quantum, but very likely guaranteeing that France will never be sanctioned for its serial ambivalence toward budget rules, whether their own or anyone else’s.

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The Man Who Invented the Euro

David Frum December 3rd, 2011 at 12:06 pm 8 Comments

The Telegraph today posts an interview of Jacques Delors by Charles Moore.

I ask the man who prides himself on being an architect of European Union whether he got it all wrong. Unhesitatingly, he denies it. It is a fault in the execution, not of the architects, which he claimed to have pointed out in 1997 when the plans for introducing the euro finally came together. At the time, he says, the best of the eurosceptic economists, whom he refers to as “the Anglo-Saxons”, raised the simple objection that if you have an independent central bank, you must also have a state.

Mr Delors thinks “they had a point”, but the way round this problem was to insist on the economic bit of the union as much as the monetary. As well as creating a single currency, you also had to create common economic policies “founded on the co-operation of the member states”.

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The EU’s Plan: Raise Taxes With Bailouts

December 1st, 2011 at 1:44 am 20 Comments

The past two weeks have seen a dizzying array of proposals from virtually every organ of the EU claiming that they can make the eurozone more efficient, durable, and solvent. If you noticed that no one is saying that they will make the eurozone more democratic, you’re not the only one. The most anti-democratic organ which is being set up is a permanent bailout fund, the European Stability Mechanism (EMS).

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Let Europeans Vote for EU Officials

David Frum November 30th, 2011 at 4:06 pm 10 Comments

In my column for The Week I explain why the European Union needs more democratic accountability:

The European Union is not a democracy because until now it has been regarded as an association of democracies. The institutions at the center of Europe existed to serve democratic governments, not to replace those governments.

When the euro currency was proposed back in the 1990s, opponents of the euro warned that different countries cannot safely share one money. Either the euro would crack up under pressure (as, say, the Scandinavian cracked up in 1914 after 40 years of Swedish-Danish cooperation) — or else the EU itself would have to evolve into a single polity.

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Poland to Germany: We Need You to Act!

David Frum November 28th, 2011 at 7:50 pm 39 Comments

In an important speech in Berlin, Poland’s Foreign Minister Radek Sikorski expressed a thought maybe has never been heard before on German soil from a Polish leader:

What, as Poland’s foreign minister, do I regard as the biggest threat to the security and prosperity of Poland today, on 28 th November 2011? It’s not terrorism, it’s not the Taliban, it’s certainly not German tanks. It’s not even Russian missiles which President Medvedev has just threatened to deploy on our border. The biggest threat to the security of Poland would be the collapse of the Eurozone.

And I demand of Germany that, for your own sake and for ours, you help it survive and prosper. You know full well that nobody else can do it. I will probably be first Polish foreign minister in history to say so, but here it is:  I fear German power less than I am beginning to fear German inactivity.

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