The European commission could be empowered to impose austerity measures on eurozone countries being bailed out, usurping the functions of government in countries such as Greece, Ireland, or Portugal. Bailed-out countries could also be stripped of their voting rights in the EU, under radical proposals being discussed at the highest level in Brussels before this week’s crucial EU summit on the sovereign debt crisis.
A confidential paper circulated to EU leaders on Tuesday by Herman Van Rompuy, the EU council president who will chair the summit on Thursday and Friday, says that eurobonds or the pooling of eurozone debt would be a powerful tool in resolving the crisis, despite fierce German resistance to the idea.
It calls for “more intrusive control of national budgetary policies by the EU” and lays out various options for enforcing fiscal discipline supra-nationally.
I wonder how many nations affected by this takeover threat were aware of the possibility when they joined the EU. You know this will provoke reactions… and quite justifiably so. Just how “intrusive” is the proposed control? Will the EU use military force against nations that resist?