“Dead Before Arrival”: Bundesbank Shoots Down EU Banking-Union Proposal; Eight Lessons the EU Needs to Learn

Courtesy of Mish.

A group of eurozone Nannycrats has agreed to meet later this month to devise a master plan for a eurozone fiscal and banking union.

Here is a synopsis from my post on Sunday Details of the Secret “Nannyplan” Emerge; Proposed Nannygroup Uniforms

Nannyplan Details

• Plans will create a “genuine fiscal union” in which individual member states would no longer be able to independently take on new borrowing. 
• Governments would only be able to decide how to spend money that is covered through their revenues.
• Any country that needs more money than it takes in would have to report that need to the group of euro finance ministers.
• Finance ministers will decide which financial levels are justified and would then issue joint euro bonds to finance these new borrowing needs.
• “The exclusive group of ministers would be led by a full-time chair, who could ultimately rise to the position of European finance minister”
• This “powerful group of finance ministers” would be controlled by a new European body in which representatives of national parliaments would have seats.

Nannyplan Synopsis

1. The proposal is to create group of nannies (similar in theory to the Fed except the decisions are primarily fiscal). 
2. The group of nannies will be headed by a master-nanny (think someone like Bernanke or in this case Jean-Claude Trichet). The nanny-master will originally be a full-time chair. However, that person could ultimately rise to the position of “European Finance Minister (EFM)”, but also known as “Grand Poobah”.
3. The nannies will be controlled by elected politicians who will no doubt appoint a master-nanny who will do what the majority wants.

List of Nannycrats Working on the Master Nannyplan

• European Union Commission President Jose Manuel Barroso 
• European Council President Herman Van Rompuy 
• Euro group head Jean-Claude Juncker 
• European Central Bank President Mario Draghi 

Notably missing is anyone representing Germany although the plans include eurobonds. Even if one ignores the eurobond issue, the nannyplan cannot possibly fly.
…