Greece loses EU voting power

[JAGO]

Joining the EU has its consequences.

v/r
phil

http://www.telegraph.co.uk/finance/f...vereignty.html

Greece loses EU voting power in blow to sovereignty
The European Union has shown its righteous wrath by stripping Greece of its vote at a crucial meeting next month, the worst humiliation ever suffered by an EU member state.
By Ambrose Evans-Pritchard, International Business Editor
Published: 7:56PM GMT 16 Feb 2010


The council of EU finance ministers said Athens must comply with austerity demands by March 16 or lose control over its own tax and spend policies altogether. It if fails to do so, the EU will itself impose cuts under the draconian Article 126.9 of the Lisbon Treaty in what would amount to economic suzerainty.

While the symbolic move to suspend Greece of its voting rights at one meeting makes no practical difference, it marks a constitutional watershed and represents a crushing loss of sovereignty.

"We certainly won't let them off the hook," said Austria's finance minister, Josef Proll, echoing views shared by colleagues in Northern Europe. Some German officials have called for Greece to be denied a vote in all EU matter until it emerges from "receivership".

The EU has still refused to reveal details of how it might help Greece raise €30bn (£26bn) from global debt markets by the end of June. Investors are unsure whether this is part of Kabuki play of "constructive ambiguity" to pressure Greece and keep markets guessing, or reflects the deep reluctance by Germany to be drawn deeper in an EU fiscal union. Greek bonds sold off as ten-year yields jumped to 6.42pc, but the euro rallied to $1.3765 against the dollar as broader issues resurfaced in currency markets.

Jean-Claude Juncker, head of the Eurogroup, hinted that ministers have already agreed on a support mechanism, should it be necessary. It will most likely involve by bilateral aid by eurozone states. He said proposals for an IMF bailout - backed by Britain - were "absurd" and would shatter the credibility of monetary union.

Many Germans disagree, including Otmar Issing, once the backbone of the European Central Bank. He said an EU rescue for Greece would be fatal, arguing that unflinching rigour is the only way to hold monetary union together without political union.

Tuesday's EU verdict amounted to a thumbs down on Greece's earlier austerity efforts, viewed as too reliant on one-off measures and too light on spending cuts. Greece must reduce its deficit from 12.7pc of GDP to 3pc in three years. Greek customs officials expressed their anger by kicking off a three-day strike, the first of many stoppages set to culminate in a general strike next week.

However, premier George Papandreou has won support from key political parties and a majority of the people. Greece may yet surprise critics by mustering its Spartan Spirit

[nmap]

Interesting article. In essence, Greece had an ongoing need for more borrowed money. They now lose a big slice of sovereignty.

Purely rhetorical question: What other country is addicted to ever more borrowed money? And might its big creditor - China, perhaps? - offer additional funding only on the condition of a partial surrender of sovereignty?

[Surf n Turf]

Originally Posted by nmap

Interesting article. In essence, Greece had an ongoing need for more borrowed money. They now lose a big slice of sovereignty.

Purely rhetorical question: What other country is addicted to ever more borrowed money? And might its big creditor - China, perhaps? - offer additional funding only on the condition of a partial surrender of sovereignty?

Sovereignty either exists or does not – Alan James

Nmap, you raise a very valid, and distressing reality, for our country. I do hope that we can deal with monetary issues without a lessening of our fragile stability.
Again, Sovereignty either exists or does not -- The US Constitution does guarantee that
SnT

Scholars like Alan James argue that sovereignty can only be either present or absent, and cannot exist partially. But here, absoluteness refers not to the extent or character of sovereignty, which must always be supreme, but rather to the scope of matters over which a holder of authority is sovereign. Bodin and Hobbes envisioned sovereignty as absolute, extending to all matters within the territory, unconditionally. It is possible for an authority to be sovereign over some matters within a territory, but not all.

Today, many European Union (EU) member states exhibit non-absoluteness. They are sovereign in governing defense, but not in governing their currencies, trade policies, and many social welfare policies, which they administer in cooperation with EU authorities as set forth in EU law. Absolute sovereignty is quintessential modern sovereignty. But in recent decades, it has begun to be circumscribed by institutions like the EU, the UN's practices of sanctioning intervention, and the international criminal court.
http://plato.stanford.edu/entries/sovereignty/