The plan to "save the euro through unlimited bond-buying" that ECB
president Mario Draghi presented last week shows one thing above all,
and with blinding clarity to boot - why nobody picks up on it is beyond
me: it shows that Draghi is the least suitable person to present any
such plan.
Any country that wants a bailout under Draghi's terms, that is: any country that wants its bonds to be bought by the ECB, must relinquish a substantial part of its sovereignty. At the very least, such a country will no longer be in charge of its own economic policies.
And it doesn't stop there: the countries that will need to pay for and/or guarantee the bond-buying will also be called on, just like the ones whose bonds are bought, to relinquish a substantial part of their sovereignty: the ECB wants much more control over the banking system across Europe. The drive is towards more centralized (i.e. Brussels, Frankfurt) control, leading to far stricter fiscal union and political union, which would take away much of the control eurozone countries presently have over their economies.
Ergo, Mario Draghi's plan is not an economic one, it's political all the way (sovereignty, don't you know). And politics is not Draghi's field, if only because he's neither a politician nor elected. He should not be allowed to have any say whatsoever in it.
Any country that wants a bailout under Draghi's terms, that is: any country that wants its bonds to be bought by the ECB, must relinquish a substantial part of its sovereignty. At the very least, such a country will no longer be in charge of its own economic policies.
And it doesn't stop there: the countries that will need to pay for and/or guarantee the bond-buying will also be called on, just like the ones whose bonds are bought, to relinquish a substantial part of their sovereignty: the ECB wants much more control over the banking system across Europe. The drive is towards more centralized (i.e. Brussels, Frankfurt) control, leading to far stricter fiscal union and political union, which would take away much of the control eurozone countries presently have over their economies.
Ergo, Mario Draghi's plan is not an economic one, it's political all the way (sovereignty, don't you know). And politics is not Draghi's field, if only because he's neither a politician nor elected. He should not be allowed to have any say whatsoever in it.
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