The just ended EU summit regarding the so-called Multiannual Financial Framework is a further step to Brussels centralisation of power as well as to a transfer union and last but not least - after derailing the own treaties - to a debt union. Finally, the Eurocrats succeeded in installing a debt socialisation similar to Eurobonds.
f.l.t.r. Ursula VON DER LEYEN, President of the European Commission; Mr Charles MICHEL, President of the European Council
It´s noteworthy to ascertain that the result of this summit will harm the EU donor-countries, but yet have no benefit for the receiving countries for the reason the transfers are tied to reform prescriptions of Brussels. The whole financial construction, first of all, serves the deprivation of nation-states fiscal sovereignty.
A core theme of the European Council´s package is a € 390 billion programme of non-repayable grants additional to € 360 billion in loans that are attached to the new budget of € 1.074 trillion. The so-called “Frugal Four” – Austria, Denmark, Sweden and the Netherlands – who were reluctant to EU-borrowing on international markets to fund subsidies could not assert themselves. The EU's ban on indebtedness, which was originally laid down in the EU Treaty, is of just as little interest regarding the alleged rescue measures as it had been the stability criteria when fruitless fighting the debt crisis - as well with further dept policy - about ten years ago.
€ 1.35 trillion non-existent money
Not to forget besides all of this, the bond purchases of the European Central Bank (ECB) which since years inflate the financial markets. Just recently, the ECB decided to increase its bond purchases under the Pandemic Emergency Purchase Programme (PEPP) by € 600 billion, to a new total of € 1.35 trillion. Moreover, as if that wasn´t enough, in April, the ECB had determined even to accept junk bonds as part of the corona measures.
Another enormous contested issue at the summit was Brussels demand for a link between accessing EU-cash and a submission to the „rule of law“ according to EU-interpretation. However, a countries sovereignty over its own legal system is a significant point of self-determination.
Overall, it is utmost revealing that the French finance minister Bruno Le Maire declared the agreement of the EU-summit as „the birth of a new Europe“. Significantly, the alleged reconstruction program is officially called by Brussels "Next Generation EU".
We face the typical pattern of EU-agenda: By breaking even the self-set EU-provisions Brussels strives to deepen EU-centralism in spending non-existent money, of which financial markets will benefit, while taxpayers pick up the tap.
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