From The Telegraph:
"Slovakia's lawmakers have rejected a revamp of the eurozone's European Financial Stability Facility (EFSF) rescue fund* in a crunch vote..."
Splendid news, so what happens next..?
"... that also toppled the country's centre-right government which had staked its future on the motion."
Aha, so that's how it works. Fail to nod through what the EU wants, and your government falls. See also: try to push through a tax on mineral extraction rights (for the benefit of the whole economy) and you'll lose your job as Prime Minister; your successor will then water the tax down to very little indeed.
* If I understand these matters correctly, what the Slovak Parliament actually did was to refuse to ratify a change to the EU Treaty (aka Constitution). As Denis Cooper explained it to me, to cut a long story, the EFSF has no legal base in the EU treaties anyway, and its proposed permanent successor the ESM cannot be set up until the EU Treaty is amended (which requires UK consent). Our MPs (or for that matter, Slovak MPs) could stop the ESM coming into force by blocking the forthcoming Bill to approve the amendment (as proposed by Decision 2011/199/EU). With that EU treaty change killed off, it couldn't be used for any other purposes, including agreeing to a Tobin tax in the eurozone (or imposing it on UK banks, for that matter).
------------------------
UPDATE: ignore that last paragraph, the Slovaks were indeed voting on a different amendment to the whole EFSF mechanism, and it's only Euro-zone countries which get to vote on this. That doesn't affect the fact that the whole ESM/EFSF is quite illegal under the EU treaty, and all EU Member States (including UK and other non-Euro- zone countries) have to ratify this.
Dear DVSA
1 hour ago
10 comments:
Err, the ESM was the one Darling agreed on 9th May last year, EFSF is the 'replacement'.......
ESM is one we still liable for under IMF, EFSF is the one we not liable for......
WFW, that is the question, isn't it? What Darling signed up to was a much smaller EFSM, which is (in bureaucrats' eyes) quite different to the ESM or EFSF.
Hence and why I rely on Denis Cooper in these matters - were the Slovaks voting on a purely Euro-zone internal matter (requiring the approval of 17 Euro-zone countries) or on the amendment to the EU treaty (requiring the approval of 25 EU Member States incl. the UK)? Buggered if I know.
Our MPs (or for that matter, Slovak MPs) could stop the ESM coming into force by
Could - operative word. Also what WfromW said re its name.
Weren't they looking to set the ESM up as a separate thing from the EU? An independent "fund". I read they were looking at ways to circumvent the treaty/ratification process.
The Beeb were helpfully reporting, before the event, that the Slovak vote would be regarded as one of confidence in the Government hence its fall.
All is not lost
"...they would try to pass the EFSF revamp in a repeated vote with support from the opposition" ah yes, the old Irish referendum ploy.
JH, Sue, I'm getting a bit confused between EFSF, EFSM and ESM right at the moment. I know the UK is not completely off the hook.
B, it's quite possibly true that the opposition are quite happy with the EFSF and did it to spite the government, well, that shows how stupid the government for treating it as a vote of confidence.
MW I have to admit to an error in my first comment - you were right and I was totally wrong! ESM is the replaement! Apologies.....
*redfaced*
Excellent. That is how it works, but also, as the Irish know, if one does push it through, there is still no guarantee the government will not fall.
At least Fianna Fáil will likely get some lovely jobs in the EU commission with gilded pensions. I think that is Cleggs plan; destroy the Lib Dem’s and then ride the EU gravy train.
WFW, not a problem, Denis C is the only man who understands all this, and I certainly don't.
Anon, that's the strange thing. Huhne & Clegg were already happily on the EU gravy train as MEPs, why did they bother with the detour via Westminster?
MW @ 15.28 - Hune and Clegg? To make sure the UK was kept to the plan. They are looking to the long term and their cosy trips back and forth on their private railway to Brussels and lots of lovely 'entitlements'.
Post a Comment