Father of the Euro Fears Elites Conspiring to Create EU Superstate by the Back Door

issing_2303828bThe euro’s founding father has warned that Europe’s latest plan for an EMU-wide finance ministry is a dangerous attempt to smuggle through political union, and breaches the basic tenets of modern democracy.

Professor Otmar Issing, the chief architect of monetary union through its early years, said it would be “dangerous” to transfer control over tax and spending to the EU federal level before full political union has been established first on democratic foundations.

Such a quantum leap in the constitutional structure of Europe – effectively the creation of an EU superstate, with a parliament comparable in power to the US Congress – is unthinkable in the current political atmosphere.

It would require referenda across Europe, and a two-thirds majority in both houses of the German parliament. “The chances of political union are close to zero,” he said, speaking at the Ambrosetti forum of world policymakers on Lake Como.

If Europe were to jump the gun and force the pace of integration, this would lead to a rogue plenipotentiary with unbridled powers over sensitive issues of national life. “It is hard to see how it could be given democratic accountability,” he said. (Read more from “Father of the Euro Fears EU Superstate by the Back Door” HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

Currency Wars: Why Is The French Industry Minister Rooting For The Devaluation Of The Euro

Photo Credit: The BlazeFollowing his embarrassing brush with U.S. CEO Maurice Taylor, French Industry Minister Arnaud Montebourg has turned to the devaluation of the euro as a means of saving France’s battered economy.

No, really.

“France’s industry minister Tuesday called for a lower euro and said the European Central Bank’s [ECB] role should be reinterpreted, wading back into a currency debate that had been calmed by an agreement between the world’s top finance ministers earlier in the month to refrain from competitive devaluations of their currencies,” the Wall Street Journal reports.

“I am for a less-strong euro,” Montebourg said Tuesday, adding that it is “good news” the euro has declined against other currencies.

As noted in the WSJ report, the euro has fallen about 4.6 percent against the U.S. dollar since February:

“I am very happy, [the decline] should continue,” Montebourg added.

The report continues:

Earlier this year, French officials complained about the euro being too strong and making the country’s exports less competitive. In a speech to the EU parliament in early February, French President Francois Hollande said the euro shouldn’t be left to fluctuate according to the mood of the markets and warned that a strong euro wipes out efforts to make economies more competitive.

Read more from this story HERE.

Dollar Hits 14-Month Low v. Euro

(Reuters) – The euro held near a 14-month peak against the dollar and a 2-1/2 year high versus the yen on Thursday, having risen solidly as investors expect central banks in both the United States and Japan to keep an aggressive easing stance.

The U.S. Federal Reserve underscored that view by leaving in place its monthly $85 billion bond-buying stimulus plan on Wednesday, arguing the support was needed to lower unemployment.

“The bottom line is that there are no signs of a shift away from QE3,” said Vassili Serebriakov, strategist at BNP Paribas referring to the Fed’s bond-buying program.

“Moreover, recent data suggest that the economy remains well short of the substantial and sustained improvement that the Fed is looking for.”

That saw the euro break above key resistance around $1.3500 and move close to $1.3570, a high not seen since November, 2011. As a result, the dollar index .DXY fell to a six-week low around 79.183. It was last at 79.263.

Read more from this story HERE.