Tue May 19th, 2020 at 03:34:33 PM EST
A French-German Initiative for the European Recovery from the Coronavirus Crisis
A modest proposal with potentially far-reaching consequences. A founding act of European sovereignty?
I am incapable of saying, writing or even thinking anything positive about Emmanuel Macron. So I will lavish effusive praise on Angela Merkel : she is a conservative, but she is not stupid, nor is she doctrinaire. On a number of historic occasions, she has demonstrated an unstatesmanlike, but crucial, ability to change her mind. Who will follow? Who, in Germany, dare stand against her. And if this proposal goes through, in the twilight of her career, she will establish a lasting, positive legacy.
Frontpaged - Frank Schnittger
The European Union has no sovereignty, according to the narrative, because it has no power to raise taxes. Modern monetary theory tells us that this is incorrect : sovereignty is defined by the power to issue debt.
If the EU Commission is given the authority to raise 500 billion euros from the capital markets, and issue grants to governments in need, then all is changed, changed utterly... And I can't currently see a way for the German constitutional court to sabotage it.
"But how will it be paid back?" is the obvious question, that the obvious people will ask. The obvious answer : EU taxes, which would be a major step forward. The proper answer : It won't be. It can be converted to perpetual bonds : EU Consols.