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THE NEXT STEP TOWARDS CATASTROPHE: A EUROPEAN BANKING UNION

“There is no example in history of a lasting monetary union that was not part of one State.” – Otmar Issing, former chief economist German Bundesbank, later governor of the ECB, c.1999

“That in what pertains to the control of credit the constant and predominant aim shall be the welfare of the people as a whole” – Irish Constitution, Article 45, Directive Principles of Social Policy

“A federalised banking union: Europe too has a ready model across the Atlantic … The logic of federalizing this [banking] function is as powerful in Europe as is has always been in the US. ” – Irish Times editorial, 7 June 2012

“The United States or Australia and New Zealand are immigrant societies and therefore they still accommodate more readily those from other backgrounds than we do ourselves, who still nurse a sense of our homogeneity and difference from others. And that’s precisely what the European Union, in my view, should be doing its best to undermine.” – Peter Sutherland, House of Lords Migration Committee, BBC News, 21 June 2012

We live under a system of finance capitalism in which the interests of peoples and of States are subordinated to those of bankers by the bulk of national politicians.

Politicians in the peripheral countries of the Eurozone shifted the bad debts of insolvent banks on to the shoulders of national taxpayers to prevent those banks going bust and to ensure that the German and French banks which were responsible for most of the improvident lending would get their money back.

They now want to shift control of banks and banking to the supranational level so that the big banks in the big EU countries can more easily gobble up the small banks in the smaller, while simultaneously taking another step on the road to the fiscal and political union the Eurofanatics have been dreaming of for decades.

An EU banking union would deprive national States of the ability to make banking and credit creation serve national developmental goals.

It would make it impossible for the State to insist that Irish banks should subscribe to its State debt.

Having given up the power to issue money by joining the Eurozone, advocates of a banking union in the EU would pass control of credit in Ireland to banks outside the country completely.

Will the rest of the Irish media follow the lead of the Irish Times in supporting this latest lurch towards economic and political catastrophe?

It is par for the course that the career federalists and ex-Trotskyites who form Irish Times editorial policy on Europe should show their anti-national animus by supporting every move to strip the Irish State of all classical State functions.

With the sole exception of the great Douglas Gageby every editor of that paper has shared the national self-contempt which makes them identify with foreign rulers more than with their own people. In the old days it was the British Empire. Today it is the aspiring Eurozone empire. They and those around them can thereby flatter themselves they are superior to the local “Paddies”.

But will the rest of the Irish media and the Irish political class follow the Irish Times further down the road to economic and political catastrophe?

Anthony Coughlan

Director

Media statement / Wednesday 27 June 2012

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This document was last modified by Mick Carty on 2012-06-28 15:38:52.
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