24 January, 2014

Euro11: Ombudsman condemns European Council cover-up on legality of euro's Fiscal Compact

Maladministration on a grand scale! Who controls multi-billion funds that dwarf the EU’s annual budget by three or four times? Who ultimately controls the multi-trillion stranglehold that the Brussels institutions have on the budgets of national governments in the EU?  Who controls the Bank? Why are such mega projects excluded from Court action for fraud and crimes that the euro crises have already exposed across the whole euro zone?

If you thought some fiddling by MEPs or even small States like Greece, Portugal, Cyprus or Ireland was of concern, take a stiff coffee before reading on.

The European Ombudsman, Emily O’Reilly, has condemned the European Council and its secretariat in the Council of Ministers of maladministration for a cover-up and refusal to provide promptly legal information for public discussion on the  Fiscal Compact Treaty controlling Europe’s multi-trillion euro economy. The documents, essential for a proper democratic debate and consultation were requested two years ago in January 2012.

In spite of the Ombudsman’s ruling, the documents in question have still not been provided.

The Fiscal Compact is an international treaty and has not been signed by two Member States. Both the Czech Republic and the United Kingdom refused. Its relationship to the EU justice system is therefore questionable. For the European Court to act all Member States must have the measures agreed by democratic vote in a European treaty of all Member States. Then all the European institutions have their right to discuss and amend the treaty. The Council, Parliament, Consultative Committees all elected by democratic vote have to have their imput and rights on individual decisions and measures undertaken. The Commission should have clear independence. It should not be treated like a skivvy or slave of the Council of Ministers. It is not their Secretariat! Then the European Court of the EU can make its judgements when their is a complaint from any citizen, organization or State.

Signatories of an international treaty conversely, for example, NATO or the Council of Europe, cannot ask the European Union’s Court of Justice in Luxembourg to make judgements for them.

So what is the status of the Fiscal Compact?

It spends nearly half of its many pages with a Preamble with many indents or tear-jerking appeals of its Europeanness: Conscious of this, Desiring that, Recalling this that and the other of European goals and even institutions. The truth is it is not a part of the European Union or the Community. It is a separate international treaty, fixed up by some politicians in a fix. They have used all the lawyers’ skills and deceits to give a facade that it is part of the European legal system, as best they can. But they can’t. There are two members missing and only treaties inside the Community system embracing all members are EU legal treaties.

How can outraged European citizens or duped Member States appeal if other States do not comply with the Compact’s strictures? What can anyone do if some politicians treat the other States as financial patsies? That is just what the monetary crises in Greece, Spain, Portugal, Italy and Ireland and others are all about. The public’s conclusion is obvious. Some politicians are not honest, nor do they act honestly with the people’s money. Money deranges their judgement. They treat it as a slush fund to dole out to people they hope will vote for them. If they can’t get away with it at home or run out of money they tap into the prosperous countries that keep their books in order and have a surplus.

The full title of the Fiscal Compact is Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. It tries to add additional bandages on the badly conceived and crisis-ridden Euro project.

The euro was made by politicians for politicians, hoping they would get away on a European scale with overspending and hidden financing they had all been doing since the 1970s. Then surprise, surprise, the public found out that the politicians cooked the books, not only in Greece but practically everywhere. In a commercial company that sort of duplicity and malpractice would have been considered criminal. But politicians say it is normal for them. They are only dealing with public money!

No wonder that the politicians’ main scam, the Euro, has experienced only 7 or 8 years of stability and convergent national bond interest rates.  That is a blink of an eye in the lifetime of a solid, stable currency. Why did interest rates explode again? It does not have solid monetary or democratic foundations.

The euro’s worth has fallen to a quarter or  fifth of what its value should be worth against stable stores of value. Its conception and management by the secretive EuroGroup, which is not an institution of the EU, flies in the face of any real Community democracy. A Community currency requires Community democratic control.

The other bandages that the Council politicians concocted in the privacy of their meetings, the European Stability Mechanism and the European Finance and Stability Facility with half a trillion euro and its Mechanism that leverages a few more billion from the EU budget. This created a company in Luxembourg to draw billions of loans and liabilities from international financial markets. Who is this money for? Why, the same States that are already seen as betraying the public’s trust in cooking the statistics and overspending their budgets. In other words the taxpayers will have to pay for any mismanagement in these operations too.

And what do we find in these treaties? Surprise, suprise! We find an assurance by the same politicians that anyone involved in these multi-billion operations, when seen to be obviously guilty of malpractice, is offered total legal immunity from prosecution!

Not only that no document will be available for public scrutiny. No document will be able to be controlled and judged by any court of law whatsoever! This is what the relevant article of the ESM says about its staff and their paper trail:
ARTICLE 35
Immunities of persons
1. In the interest of the ESM, the Chairperson of the Board of Governors, Governors, alternate Governors, Directors, alternate Directors, as well as the Managing Director and other staff members shall be immune from legal proceedings with respect to acts performed by them in their official capacity and shall enjoy inviolability in respect of their official papers and documents.
Who are the governors? Why, the politicians! That is a paradise for crooks and crooked practice. It is an invitation to mega crisis.

The Background with my last commentary on this case can be found at Euro10.
The Ombudsman’s judgement on the Fiscal Compact cover-up can be found at
http://www.ombudsman.europa.eu/en/cases/decision.faces/en/53191/html.bookmark

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