Tensions over the future course of eurozone integration have been laid bare as Spain a radical expansion of the European Central Bank's powers over member states. Ahead of a June summit of European leaders, Madrid has urged its fellow member states to expand the role of the ECB in order to curb dangerous "macroeconomic imbalances" building up in the currency union. In list of highly ambitious proposals, Spain also called for the single currency to adopt a common budget for use in emergency rescues, and issue debt in the form of eurobonds, according to a list of proposals reported in El Pais  Both measures are likely to meet the resistance in Germany, Europe's largest creditor, as a further pooling of funds that would effectively subsidise southern debtor states. They would also likely require a reworking of Europe's treaties - a shakeup that has been ruled out by Berlin as Britain also seeks to renegotiate its relationship with Europe. Highlighting the euro's exposure to "asymmetric shocks", the blueprint urges for a revolution in the ECB's mandate, requesting the central bank adopt tools to prevent soaring debt levels and crippling unemployment.  The direction of eurozone integration is up for question as France and Germany draw up plans to overhaul the euro ahead of an EU leaders' summit next month.  On Monday, it was revealed that Chancellor Angela Merkel and French president Francois Hollande had agreed to push ahead with greater integration but ruled out the possibility of a treaty change to Europe's existing legal framework.  Price stability is the overriding objective of the ECB, as enshrined in the Maastricht Treaty - the founding document of the euro.  But Madrid's ambitious calls could see the ECB expand its powers and emulate the US Federal Reserve, which operates on a dual mandate that includes an unemployment target. Spain has the highest level of youth unemployment in the 19-member bloc at over 50pc.  Madrid's plans highlight the rift between northern and southern members over competing visions for the single currency.   Germany and its creditor allies are seeking to enshrine greater fiscal discipline into the euro's legal framework, while debtor states, including France, have called for greater investment and pooling of emergency funds. Allowing the ECB to take a central role in dictating government economic policy would arguably require a reworking of Europe's treaties, say analysts.

 

I don´t have a crystal ball…. So is difficult to speak about what could be the situation in a scenario of “NO Euro” ,…. BUT, in my opinion (and taking in account the huge amounts of money managed by the Market strong hands, and the incredible instability caused by the Global crisis ....where only a rumor can tumble the market for a country ) …. Is that most of the European countries would be in a very, very harsh position.  Remember the attacks of Soros against the pound (when the Market was far away smaller tan now), look at Switzerland plummeting industries and the Swiss central bank failure to pledge the Swiss franc with the euro …. Well!!... The situation NOW could be nuclear in the absence of the Euro net.  So,…. When you are bad mouthing the actual situation of Europe .... you should think in the other possible scenario. It is not in the EU's interest that any of the subject nations should be comfortable under austerity measures.  The purpose is not to make their economies stronger because inevitably the Euro will come out of remission, a remission bought at great expense through QE and dodgy bond sales, and will once again burn through the EZ. Obviously the most vulnerable countries are those in southern Europe and the first to suffer but without integration (called for by Merkel in 2011 and applauded by Cameron as both inevitable and desirable for EZ countries, which is like saying amputation is inevitable desirable to save a leg when what is preferable is not to suffer the injury sustained by adopting the Euro in the first place, or joining the EU) and may even threaten Germany. The idea is that the Euro should have force integration and when it didn't that austerity measures would finish the job. When Draghi recently talked about "supervision" by Brussels, he didn't just mean Greece and he really meant "integration.  The trouble is if the nations under austerity think austerity is a cure or become complacent...

Europe faces the risk of a second revolt by Left-wing forces in the South after Spain's, Portugal’s Socialist Party vowed to defy austerity demands from the country’s creditors and block any further sackings of public officials. "We will carry out a reverse policy,” said Antonio Costa, the Socialist leader.  Mr Costa said a clear majority of his party wants to halt the “obsession with austerity”. Speaking to journalists in Lisbon as his country prepares for elections - expected in October - he insisted that. Portugal must start rebuilding key parts of the public sector following the drastic cuts under the previous EU-IMF Troika regime. The Socialists hold a narrow lead over the ruling conservative coalition in the opinion polls and may team up with far-Left parties, possibly even with the old Communist Party.  “There must be an alternative that allows us to turn the page on austerity, revive the economy, create jobs, and – while complying with euro area rules – restore hope to this county,” he said. The plan would appear entirely incompatible with the EU’s Fiscal Compact, which requires Portugal to run massive primary surpluses to cut its public debt from 130pc to 60pc of GDP over 20 years under pain of sanctions. The increasingly fierce attacks on austerity in Lisbon are likely to heighten fears in Berlin that fiscal and reform discipline will break down altogether in southern Europe if Greece’s rebels win concessions. Worry about political "moral hazard" is vastly complicating the search for a solution in Greece. “Greece is the testing ground and everybody is watching very carefully. That is why the Spanish and Portuguese prime ministers have been so hawkish,” said Vincenzo Scarpetta, from Open Europe.

Six banks have been fined $5.7bn (£3.6bn) by authorities in America and the UK for rigging foreign exchange markets.  Barclays, Royal Bank of Scotland, JPMorgan, UBS, Citigroup and Bank of America were handed the sum, the biggest combined bank settlement in history, on Wednesday afternoon. Separate fines and settlements announced at the same time took the total bill on the day above $6bn. The new sum now brings the total bill for the foreign exchange scandal, one of the most expensive in banking history, to around $10bn. Barclays, RBS, JPMorgan and Citigroup are pleading guilty to criminal charges, while UBS has pleading guilty to Libor rigging, since the manipulation violated previous agreements. Traders at the banks used electronic chatrooms, describing themselves as "The Cartel", to manipulate currency benchmarks, making large profits at the expense of customers. Barclays is firing eight employees as part of their settlements, it said.

"What do European citizens think when they see the images on TV, when they see the tragedies that are going on in the Mediterranean? The answer is clear: we need to have a European response", said Manfred Weber MEP, Chairman of the EPP Group in the European Parliament, during the debate on migration in the plenary session of the European Parliament in Strasbourg.  "The EPP Group welcomes the solidarity mechanism that has been proposed, but which still needs to be put together. On the other hand, we also need to make sure that those who do not fulfil the criteria to be granted asylum should be returned. It is the only way to ensure that European citizens support our asylum policy in the long run", he said.

"The current crisis in the Mediterranean will only be solved by a common European response. We are willing to continue the good job that the European Commission has initiated. For now, it is the Member States who are not playing their part. We call on Member States to go along with European initiatives."

Watch out for Spain's elections end of the year...Britain will leave I am sure of it...Britain never had a chance against the false Frogs and the Krauts, but it all started when the Germans invaded France in 1940...The French gave up without much of a fight and lets face it Vichy government got into bed with Adolf's government for a  Franco - German orgy....well ...Britain and the US  fought for Europe's freedom only to be sidelined. It's time to put the story right and stick the knife into the European blow up doll.  The only beneficiary of the EU is Germany when will all those queer politicians show their true cards ????  The Eurozone is bust but the moronic joe public believe the media and lets face it as long as the grub is on the table, the car is in the garage and the bird strips and goes to bed with her man all is fine... If the West really do decide to pay big money to keep Greece firmly anchored (shackled) inside the Western camp - Germanic instinct would swiftly price and cost that decision...because this is what they do!  And when they arrive at sum total, a portion of that bill should be sent to Paul Thomsen the Dane who needs 24 hour protection, the moment he steps foot on Hellenic soil. Thomsen cost the Greeks their dignity - Thomsen also cost the "West" Billions. On his will, on his demands Greece lost 3 Million self-employed businesses, the backbone of Greek society. He destroyed Greece!

These EU Commission clowns that conduct themselves as emperors over a  bureaucratic menage of stupidity, have no sense of right or wrong as  long as they retain the power and the wealth that comes to them by  maintaining it. They are not prepared to see, or attempt ot understand  the problems that they inflict on the so called member states. They are hide bound by now, into believing that they rule and only they are capable of doing so. Their belief is in an ever expanding Union that will somehow triumph over the USA, and, being incapable of understanding that the centuries old disparate cultures of the union cannot be dismembered by a common currency and the free movement of people, they will plough on relentlessly.  All would have been well if they had simply followed the idea of free
trade. But you can expect no better from politicians, whatever their hue. It is we the people who suffer the consequences of their stupidity. Cameron is on a hiding to nothing and is probably part of
the scam: sounding good but playing their game and knowing full well that, at least as far as the UK is concerned, especially with all the lefties in the celtic fringe and the EU migrants able to vote with their guided 'yes' vote to stay in the bloody union... People try to complicate things, but generally you can get to the nub of most issues pretty quickly. I) The Greeks aren't prepared to live as their productivity allows. 2) They aren't prepared to make the debt interest payments as the price of being in the Euro. 3) The Germans aren't prepared (and who can blame them?) to permanently subsidise Greek lifestyles.  So they have to leave the Eurozone, and personally I'd throw them out of the EU and try to recover the money through tariff barriers. The idea that there has been some huge contraction in the Greek economy, and it is the fault of the other countries, is just laughable. If someone was paid 2,000 Euros to sit in a park in Athens and drink fortified wine you wouldn't call that a job, and you wouldn't count their "activity" - or inactivity - towards GDP. But somehow if Germany provides money to create non-jobs which involve sitting in an office, rather than a park, we're supposed to count that "output" (playing Crystal Maze, or whatever) in the GDP figures, and blame Germany when the "contraction" happens. Yeah, right...