Economic dictatorship and The European Stability Mechanism (ESM)

Nov 05, 2011 12:00 AM

by Rudo de Ruijter and Jozeph Muntenbergh

See the video at:

Is the EU and the euro in crisis?
The EU is planning a new fundamental law, the Treaty for the establishment of the so called European Stability Mechanism. (ESM), the Debt Union. The draft for the ESM is now to be examined by the representatives in Parliament.

Art. 8 The founding capital is EUR 700 bn.

Where does this amount come from? Who has calculated it and on which basis?

Art. 9.3 ESM Members hereby irrevocably and unconditionally undertake to pay on demand any capital call made on them... to be paid within 7 days of receipt.

When the ESM calls, then things must go fast. Indeed, seven days, that means that with the usual delays in bank transfers we must fill in the check within four days. That is feasible. Just, maybe, what means unconditional and irrevocable? When a new parliament is elected that would not want these fund transfers anymore? They can’t decide that anymore?

Art. 10.1 The Board of Governors may decide to change the authorised capital stock and amend Article 8.... accordingly.

The EUR 700 bn are just the start? So, the ESM can demand more when they wish. Illimitably. And we are then obliged to pay -- according to article 9 -- irrevocably and unconditionally?

Art. 27.2 The ESM shall have full legal capacity to be a party to legal proceedings; and

Art. 27.3 The ESM, its property, funding and assets shall enjoy immunity from every form of judicial process...

I wonder, the ESM can indict others, but not be indicted themselves?

Art. 27.4 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.

We already mentioned that just before. But also our governments, our administrations and our democratic laws, are all without any right and might against the ESM? It is really very mighty, this ESM!

Art. 30.1 the Governors, alternate Governors, Directors, alternate Directors and other staff members shall be immune from legal proceedings with respect to their acts and shall enjoy inviolability in respect of their official papers and documents.

No responsibility? Towards nobody? And, inviolable documents, does that mean that we are not allowed to damage them, or that we are not even allowed to read them?

  • A new authority to which we must transfer illimited funds within seven days, whenever they want us to;
  • the authority can indict us, we can’t indict them;
  • all participants enjoy immunity;
  • no laws apply;
  • no government can do anything;
  • the European state households are made subservient to one institution that has not even been elected.

Is that the future of Europe? Is that the new EU? A Europe without sovereign democracies? Do you want that?

What is this aberration?
That was my first reaction when I saw this video.
This is not possible. An organization that can empty the state’s coffers, just like that? We live in a democratic country, don’t we? To be sure, I searched for the official texts.


The articles mentioned in the video are easy to find (from page 19). As for the rest of the treaty, I have not been able to find anything that would limit this dictatorial power in any way! I am still shaking!
But how is this possible within the framework of the treaties of the European Union? For this constitutes an illegal extension of the competences of the Union! Searching further I find out a number of decisions have been taken discretely and quickly to make this ESM “possible”.

I am certain that if politicians in our country wanted to create a club, that would have the freedom to empty the coffers of the State when it wants and as often as it wants, they would not succeed in obtaining the needed changes in the law, not even in twenty years!
But Brussels’ bureaucracy succeeds in adapting the treaties at high speed to commit this coup d’état in 17 countries simultaneously!!!

The Brussels sprint
On 17 December 2010 the European Council decided there was a need for a permanent stability mechanism to take over the tasks of the Financial Stabilization Mechanism (EFSM) and the European Financial Stability Facility (EFSF). These are two rapidly erected organizations, respectively in May and June 2010, to supply loans to countries with too many debts. However, these organizations lack a legal basis.
Let us already note here that these organizations were explicitly conceived for financial interventions, while the amendment in the treaty that allows the establishment of the ESM, also allows setting up organizations for quite other fields of action.

This amendment arrived on March 25, 2011. To avoid having to organize referendums in Europe once more, they used article 48.6 of the Treaty of the European Union, which allows the European Council to decide changes in the articles of the treaty, under condition they don’t constitute an extension of the competences of the EU.
(Those decisions have to be ratified by the national parliaments, but that is generally a formality.)

The amendment consisted of an innocent looking addition to a paragraph of article 136 (TFEU). In short, this addition stipulated that “the countries using the euro were allowed to establish a stability mechanism to safeguard the stability of the euro zone as a whole”. Expressed this way, it does not deal exclusively with financial stability. Surveillance of vigilant citizens, oppression of protests, or the fight against any other destabilizing element in the euro-zone, can, via this amendment, be conferred to new organizations under EU-flag.
In other words, this amendment surely constitutes an extension of the competences of the EU. Thus, it violates article 48.6 of the Treaty of the European Union. Nevertheless, no Minister and no national Parliament were bothered by this and in Brussels they happily and promptly continued to draw up the ESM treaty.

On 20 June 2011 the national Parliaments authorized that the tasks of the ESM treaty would be executed by the EU and the European Central Bank.
On 11 July 2011 the treaty was signed. Although the signature was made public later that day, directly at the opening of a press conference with dozens of journalists, the next day there was not a single headline in the newspapers (not nationally, nor internationally) about the signature of this new European Treaty. Could it be caused Juncker announced it in French... before continuing the conference in English?

At the moment the ESM treaty awaits ratification by the national Parliaments of the euro-zone countries. The treaty isn’t in force yet and already they speak about the necessity to raise the capital from EUR 700 bn (that is EUR 2,100 per euro zone citizen) to EUR 1,500 or EUR 2,000 bn.
According to its text, the treaty enters into force in June 2013. Now they want to change that into 2012.

Logically they will ask the national Parliaments to hurry with the ratification. In Germany, the subject is already being debated. Apparently they had to hurry because more and more Germans are waking up!
If we want to use the last democratic straw to avoid this dictatorship, we must urgently wake up as many citizens as we can and send as many emails and letters to our Parliamentarians, politicians and political parties. Waiting around to see if others succeed will be catastrophic.

In most of the euro-countries nothing or almost nothing is known on this subject.
Once a dictator is seated on his throne, you can’t evict him for 30 years! Do we want that for our children?

Pictures for the posterity
Photo session of the persons who, one day, will be asked why they put an end to the sovereign democracies in Europe. Link to the 30 pictures:{60bec2d5-00c7-43eb-8822-7970df493f13}

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