Agreements must be honored – even the old Romans knew that. Once something has been fixed and signed in written form by all parties involved this agreement has to be fulfilled by the corresponding parties. Same holds true for the recently highly disputed treaty to establish the European Stability Mechanism (ESM). All 17 member states of the European Monetary Union and thus their people have to agree on – but question remains do we, the people, really agree on that?
There are some interesting details being fixed in this treaty – let’s take a closer look…
Article 8(1) – Authorised capital stock:
The authorised capital stock shall be EUR 700 000 million [700,000,000,000 Euro].
Why 700 billion, why not 600 or 800 billion? Who calculated this sum and on the basis of which requirements?
Article 9 (3) – Capital calls:
ESM Members hereby irrevocably and unconditionally undertake to pay on demand any capital call […] to be paid within seven days […].
Thus, all sovereign EMU nations are required to unconditionally and irrevocably (forever?) use any portion (if not all) of their national budgets to fulfill any requirement by the ESM.
Article 10 (1) – Changes in authorized capital stock:
The Board of Governors […] may decide to change the authorised capital stock and amend Article 8 […] accordingly.
700 billion Euro not enough? No problem, let’s just change the authorised capital stock effective immediately and call for EMU states to fill the gap! National parliaments effectively loose their influence on their own budgets to the ESM.
Article 27 (2), (3) & (4) – Legal status, privileges and immunities:
2) The ESM shall have full legal personality; it shall have full legal capacity […].
3) The ESM, its property, funding and assets […] shall enjoy immunity from every form of judicial process […].
4) The property, funding and assets of the ESM shall […] be immune from search, requisition, confiscation, expropriation or any other form of seizure, taking or foreclosure by executive, judicial, administrative or legislative action.
It can sue you to but you can’t sue it. It can take everything the people have, but they can’t take anything from it. Not even governments and laws have access to it.
Article 30 (1) – Immunities of persons:
[All] staff members shall be immune from legal proceedings with respect to acts performed by them in their official capacity and shall enjoy inviolability in respect of their official papers and documents.
And the organization is run by “The Untouchables”…
Finally, let’s sum up what “we” have agreed on so far. The ESM has the right to take any part of national budgets immediately. It cannot be held liable or influenced in any way – not even by the governments that created it. The people working for this extremely powerful, multilateral body are immune and are not responsible for their actions.
Sounds like a transparent, fair and democratic deal for all of us, doesn’t it?
PS.: Don’t believe it? Here is the treaty: http://www.consilium.europa.eu/media/1216793/esm%20treaty%20en.pdf