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EU Passes Law Forcing Countries to Take Bailout; Spain First Target?

Politics / Eurozone Debt Crisis Mar 13, 2013 - 10:57 AM GMT

By: Mike_Shedlock

Politics

Want a bailout? Need a bailout? Actually, it does not matter what your country wants or needs.

By a 526 to 86 vote, the nannycrats in Brussels just passed a regulation that will require a country to accept a bailout if offered.


Via Google translate from El Economista, Brussels may force a country to ask for a rescue if eurozone threat.

The full European Parliament on Tuesday gave its final approval to the rule giving new powers to the European Commission to monitor national budgets of eurozone countries and even request changes before parliamentary approval. According to this regulation, agreed with the Twenty, Brussels may force a state to ransom.

According to this rule, which goes ahead with 526 votes in favor, 86 against and 66 abstentions, the governments are obliged to send to Brussels its draft budget for next year by 15 October each year.

The EU executive may publish its opinion on the national and even request changes if it believes that deviate from the objectives of consolidation undertaken by each country. However, your request will not be binding.

In addition, the new standard allows Brussels submit to increased surveillance to countries that threaten the stability of the eurozone and even force them to ask for a rescue, with the objective of minimizing their costs.

Surveillance cycle

Vice President of the Commission responsible for Economic Affairs, Olli Rehn, said on Tuesday that the adoption of this standard "will complete the cycle of budgetary surveillance for euro area Member States."

Rehn has argued that if these rules had existed since the birth of the euro "would never have experienced a crisis of such magnitude."

An Offer You Cannot Refuse

Rehn is a liar, a fool, or both. I vote both.

The EU had nothing but praise for Spain when the Spanish housing bubble was brewing. It would not have done anything other than what it did, which is cheerlead the housing boom, just as Bernanke and Greenspan did in the US.

I like the translation "force a state to ransom".

The EU has twice offered Spain a bailout. Spain has rejected the offer twice. The next offer just may be the one that Spain cannot refuse

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

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Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

© 2013 Mike Shedlock, All Rights Reserved.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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