Sound the socialism klaxon! In a piece entitled ‘Finding new ways out of the crisis’ published by the European Economic and Social Committee in October 2013 via the Europa website, the European Commission made this announcement:

“The time has finally come to see that only substantive reforms can put us back on the path to a sustainable economy, with sufficient redistribution of wealth to be able to serve society as a whole”.

This is a clear declaration of intent for the EU to authorise member states taking from the ‘top’ and handing it to the ‘bottom’.  The EU, as the supranational body, will necessarily decide what is the top, and what is the bottom, and by what means this wealth is to be redistributed. This statement of intent comes just after the IMF proposed a ‘world tax’ of 10% of ALL wealth in autumn.

Clearly the EU has been listening.  And why should it not seek new avenues of income? After all, according to the website www.countryeconomy.com, the combined debt of EU 28 stands at €11.2 trillion, although this does not include future pensions’ liabilities from state pensions and pensions payable to retired state employees, which could take the total 3 or 4 times higher.

As quick as Germany is to back European legislation if it works to its advantage, she is also quick to oppose any move which may jeopardise her position within The Club.  In a pre-emptive move the Bundesbank said in its monthly report this week:

“(A capital levy) corresponds to the principle of national responsibility, according to which tax payers are responsible for their government’s obligations before solidarity of other states is required.”

In other words, Germany is exempting itself from any EU-wide grab, despite the fact that its industrial and exporting requirements forced down interest rates thus creating the asset boom and bust in the periphery.

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