I have trouble imagining how Euro leaders would excuse the elected leaders and enforce tax increases on the people of a “bankrupt” nation. Surely the people would just open their wallets, right?
And how about that justification:
Trichet said the building blocks already are in place for moving ahead with his fiscal plan.
Countries have agreed to surveillance of each other’s budgets and they have agreed to levy fines on countries that run excessive budget deficits, giving them fiscal oversight authority.
The next step would be to take a country into receivership when its political leaders or its parliament cannot implement sound budgetary policies approved by the EU. The action would have democratic accountability if it were approved by the European Council of EU heads of states and the elected European Parliament, he said.
I don’t know about you, but that doesn’t seem very far from Hitler saying his invasion of Poland was “democratic” because all the people under German government and the people of Poland had implicitly voted, and the majority won…
What, exactly, is a “sound budgetary practice” for a government facing double-digit borrowing rates and debt nearing 200% of GDP?