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ECB: Crisis nations have lost their sovereignty
Photo: DPA

ECB: Crisis nations have lost their sovereignty

Published: 28 Oct 2012 21:14 GMT+01:00
Updated: 28 Oct 2012 21:14 GMT+01:00

The head of the European Central Bank (ECB) on Sunday threw his weight behind a German scheme to allow the EU to intervene in countries' budgets and propose changes before they are agreed in parliaments.

The EU should have the power to police and interfere in member states' national budgets, Mario Draghi told Der Spiegel magazine in an interview due to be published on Monday, saying he “completely supported” the suggestion by German Finance Minister Wolfgang Schäuble to give more autonomy to the EU's economic and monetary affairs commissioner.

“I am certain, if we want to restore confidence in the eurozone, countries will have to transfer part of their sovereignty to the European level,” Draghi told the magazine, demanding a more concerted push for European integration.

"Several governments have not yet understood that they lost their national sovereignty long ago. Because they ran up huge debts in the past, they are now dependent on the goodwill of the financial markets," Draghi said.

Since the outbreak of the eurozone debt crisis three years ago, the European Union has taken unprecedented measures, including creating a fiscal treaty between them, setting up a huge joint bailout pot and moving towards a banking union next year.

“Governments have taken steps that would have been unthinkable a year ago. That is progress but it is not enough,” Draghi said.

Creating new financial rules in the EU will not be enough to save the currency, said the central bank chief, they must also be rigorously enforced.

Draghi also reiterated his defence of the ECB's disputed programme of buying the bonds of debt-wracked countries to drive down their borrowing, unpopular with Germans who fear it will cause inflation.

"My family once lost a large part of its savings through inflation. So you can be sure that I champion price stability not just for professional reasons but also for personal reasons," said the Italian.

EU leaders will gather in Brussels on December 13 and 14 to thrash out a framework for the future running of the 27-nation Union on the basis of a report being drawn up by Draghi and three other senior EU politicians.

AFP/DAPD/The Local/jlb

The Local (news@thelocal.de)

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Your comments about this article

17:31 October 28, 2012 by Englishted
Amazing now they want it ,why didn't they when France and 'Germany were breaking the rules ?.

"The EU should have the power to police and interfere in member states' national budgets, " may as well do away with elections as well because democracy is dead as soon as this happens.

I am glad G.B. didn't join the €uro when I see the dictatorial powers that they want,it will split Europe again between those in the €uro and the rest.

I find this a very dangerous trend .
19:16 October 28, 2012 by Eric1
What Hitler, Stalin, Napoleon couldn't do, the EU has. Uniting Europe under one socialist dictatorship.
20:03 October 28, 2012 by The-ex-pat
Best of luck introducing that into the UK..........................lol
21:44 October 28, 2012 by GloriousNewsComrades
looks this like Glorious days of Yalta Conference, Comrades!

'When we hang the Capitalist Pigs, they will sell us the rope we use' - Vater Stalin

Thank you, EU. Thank you because I am joyful. Thank you because I am well. No matter how old I become, I shall never forget how we received our European Union. Centuries will pass, and the generations still to come will regard us as the happiest of mortals, as the most fortunate of men, because we lived in the century of centuries, because we were privileged to see Brussels, our inspired leaders ... Everything belongs to these, chiefs of our great Union. And when the woman I love presents me with a child the first word it shall utter will be : Europe
22:19 October 28, 2012 by marimay
Oh, cute. The Germans want to start WW3 as well.
08:54 October 29, 2012 by strahlungsamt
Anyone notice a subliminal Jewish symbol in that Potsdam logo?

It's a conspiracy I tells ya!
11:49 October 29, 2012 by michael4096
Of course, the details aren't in yet, but the concept of a Country Chapter 11 where an administrator helps a country in trouble need be no more communist than a business Chapter 11.

Spoils the rhetoric a bit though, doesn't it?

Whether or not the UK would be better in or out, we'll never know.
14:00 October 29, 2012 by raandy
The German's no doubt expect this loss of sovereignty will not affect them, or they would not go for it.

There is a clear need for this to happen,inorder to police the banking and finances of all members states. An autonomous policing force made up of individuals from ALL MEMBER STATES needs to be empowered to perform this necessary function if the single currency has any chance of survival.

Good point ExPat, doubtful at best the UK would endorse this.
14:13 October 29, 2012 by elboertjie
He who pays the piper, calls the tune.

Countries selling their debt to the ECB and IMF should expect to dance to whatever music the ECB and IMF plays.

The best way to stay out of this is to not play their game; stay sovereign, don't sell one's debt (Government Bonds) to central banks.

As for now, they should default on their debt, as hard as that is, it is still less painful than the current course of action.
14:39 October 29, 2012 by rugbycoach
The end game will rapidly approach when this 'loss of sovereignty' hits national democratically elected governemnts. Its time to all start making up your mind whether to have a United States of Europe or no Euro, its the only choice left. All comments from UK are irrelevant this is is Euro matter. It is only countries being bailed out centrally that are affected, that is where the loss off sovereignty occurs.
15:12 October 29, 2012 by MrNosey
Dear Greece,

All your base are belong to us.

Love,

Angie.
17:07 October 29, 2012 by Englishted
@rugbycoach

"All comments from UK are irrelevant this is is Euro matter."

Is that so then what is this?

"EU leaders will gather in Brussels on December 13 and 14 to thrash out a framework for the future running of the 27-nation Union on the basis of a report being drawn up by Draghi and three other senior EU politicians."

Read 27 that is the full E.U. not just the €uro zone .
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