It’s hard to know what is going on in the European Union these days since we’re not there on the spot. But some clues are emerging indicating that the region is on the verge of melting down.
Clue #1 – The Czech Republic considering having a referendum on EU membership.
The ruling euro-sceptic ODS party in the Czech Republic wants to push for a referendum on the country’s future eurozone accession, claiming that the rules have changed since 2003 when Czechs said yes to the EU and the euro.
That is so true.
Clue #2 – how about a Greek referendum on whether to approve the deal cut by the EU ministers a couple of days ago?
“…Newswires reported that a Greek Socialist Party official said the plan to have voters approve the rescue is “basically dead.” Then, about an hour before the close came news from a Greek government spokesman that the referendum was back on…”
Clue #3 – biggest tipoff yet. Terms of the latest “rescue” deal were not published in many news outlets. Here’s one from Mish, which includes a video. Here are some key items:
Key Details of ESM (European Stability Mechanism) Accord
- Articles 8, 9 and 10 say essentially that the Board of governors can raise any amount of capital they want without asking anybody.
- Article 27 says ESM shall enjoy “immunity from every form of judicial process”. Thus the ESM can sue member countries but no one can challenge it. No governments, parliament or any other body or laws apply to the ESM or its organization.
- Article 30 says “Governors, alternate governors, directors, alternate directors, the managing director and staff shall be immune from legal process with respect to acts performed by them (…) and shall enjoy inviolability in respect of their official papers and documents”
That’s all you need to know, really. These folks are getting desperate. No wonder markets are plunging.