share Recommend this site to a friend
deutsch deutsch
ALLIANCE FO§ DEMOCRACY
bombLetter to the IMF relation to the
Headbombno-value-ECM - 05/12/16
bombLetter to the CDU Youth Union - 14/11/16 bombLetter to the IDW regarding
Headbombthe EFSF’s Financial
HeadbombStatements – 19/10/16
Headbomb+ Correspondence IDW -> MFD 15/11/16
Headbomband MFD -> IDW 16/11/16
bombLetter to the european Financial
HeadbombSupervision relation to the
Headbombno-value-ECM - 03/10/16
bomb14th Letter to the Parliament for Judicial
HeadbombReview of the Free-Trade
HeadbombAgreements - 27/05/2016
bombApplication to the Constitutional
HeadbombCourt for Judicial Review of the
HeadbombFree-Trade Agreements - 27/05/2016
bombBILD - Pillory of Shame - 21/12/15 bombCriminal charge of making a false
Headbomballegation against netzpolitik.org - 17/09/2015
Headbomb+ response of Public Prosecutor in
HeadbombBerlin - 20/05/2016
bombLetter to the Ifo President - 05/11/14 bombComplaint to the German
HeadbombPress Council - 21/11/13
bombLetter to the IMF - 17/10/13
Headbomb+ Supplementary letter 22/11/13
bombLetter to the EU Commission - 17/10/13 bombLetter to the Presidium of the ECB - 17/10/13 bombAgainst the dismissal of
HeadbombFederal President Wulff - 13/06/13
Headbomb+ Response from the Hannover
HeadbombPublic Prosecutor's Office 25/07/13
Headbomb+ Opinion of the Alliance for
HeadbombDemocracy 21/08/13
Headbomb+ Letter to Celle General State Prosecutor’s
HeadbombOffice 10/10/13
bombPetition for the independence of the
HeadbombJudiciary and State Prosecutor - 06/05/13
Headbomb+ response by the Petitions Committee of
Headbombthe German Bundestag - 08/06/16
bombPetition for the introduction of genuine, direct
Headbombdemocracy - 25/04/13
Headbomb+ reply of the Bundestag - 14/11/16
bombPetition against corruption - 25/03/2013 bombCriminal complaint re. Target 2 10/11/2012 bomb1st Constitutional Complaint - against the
HeadbombFederal Government - 21/03/12
bomb2nd Constitutional Complaint - ESM incl.
Headbombsupplement - 12/06/12
bomb3rd Constitutional Complaint - ESM incl.
Headbombsupplement - 18/09/12
bomb4th Constitutional Complaint - Federal
HeadbombGouvernment against the ECB (by CJEU)
Headbomb27/09/12
Headbomb+ response of Federal
HeadbombConstitutional Court - 06/06/16
bombPress reports 27/6/12 + 24/10/12 bombSpringer complaint 28/09/11 bombDelayed insolvency bombPetition to the German Parliament 31/05/11 bombPetition to the European Parliament 21/06/11 bomb1st Letter to Members of Parliament 23/06/11 bomb2nd Letter to Members of Parliament
Headbomb26/09/11
bomb3rd Letter to Members of Parliament 19/05/12 bomb4th Letter to Members of Parliament 23/05/12 bomb5th Letter to Members of Parliament 20/06/12 bomb6th Letter to Members of Parliament 27/06/12 bomb7th Letter to the Parliament 27/9/12 bomb8th Letter to the Parliament 15/10/12 -
Headbombagainst Corruption 15/10/12 in addition to
HeadbombPetition 25/03/13
bomb9th Letter to the Parliament 24/10/12 bomb10th Letter to the Parliament 05/12/12 bomb11th Letter to the Parliament - 20/05/13 bomb12th Letter to the Parliament - 16/10/13 bomb13th Letter to the Parliament - 10/12/15 bombQuestions to the Bundestag 27/28/06/12 bombTo the members of the Bundesrat 14/06/12 bombTo the minister of finance 12/06/12 bombSecond Letter to the Finance
HeadbombMinister - 27/02/15
bombObjection to Hartz IV - Judicial Review
HeadbombComplaint BVerfG
bomb1st Lawsuit against Federal government
bomb21/03/11
bomb2nd Lawsuit against Federal government
bomb05/10/11
bombOpen letter 16/18/02/11





Fiscal Pact

The decision of 31st January 2012 in Brussels, which Angela Merkel lauded as a masterstroke for the promotion of the future European Community, is primarily a press policy lie and a masterstroke in this sense only.
After the 17th meeting of the financial representatives of Europe, the talk must instead be of the selling out of Europe and the end of previous democracy. The fiscal pact negotiated at this summit is a political concoction based on incorrect economic principles, incidentally on the same false principles which led to the Euro crisis: the cover-up of the actual national debt and the political error of judgement of being able to combat this with loans.

In summer 2012, 25 of the 27 EU countries (Great Britain and the Czech Republic will not be there) will meet to sign the pact. The signatories undertake in future:

1. to submit almost balanced budgets;
2. the respective national deficit must be no more than 0.5 % of the economic power and
3. the signatories acknowledge a debt brake according to the German example, and will introduce it. The signatory countries may bring an action before the European Court of Justice in case of infringements against the debt brake.

The Fiscal Pact applies from 2013, if ratified by 12 Euro countries.

A balanced budget is the only basis for economic viability of every country. Countries that suffer from a high national debt (and this currently includes all Euro countries) can achieve no growth and also no balance of the national budget, because there is no money to invest in development and expansion. The fact that this point is addressed at all in the negotiations of the saver countries, worse still had to be specified, is clear proof of how little money remains in any of the national coffers. It requires a hedge of the countries against each other, so that this point does not lead to inequalities or dispute, because if all countries had enough money and did not need to rely on loans, things could have been negotiated very differently.

A national or budget deficit occurs when government expenditure exceeds revenue. A balanced budget balance arises if the expenditure and revenue are equal. Another possible form is the budget or national surplus, if revenues exceed expenditure. The terms can be used for the overall national balance, but also for individual public corporations at the state or local level. National deficits are countered politically with loans, as during the entire Euro crisis - in Germany borrowing is limited under the basic law to government expenditure for investments. The term national deficit includes new borrowing. This term refers to the part of the national budget which is financed by loans. New debt can be measured in absolute terms or as a deficit quota in relation to the gross domestic product.

If the fiscal pact comes into effect, it will cause the borrowing needs of the member states to rise and rise, because the federal budget is not covered. And also there are - fortunately - statements in the press on this subject: In the FAZ of 19.1.2012, p. 29, a Mr. Kaletsky advises in his article "Throw the Germans out, not the Greeks, in order to save the Euro.": "The peripherals should unite against the centre and suggest that Germany withdraw from the Euro zone." And he also acknowledges the basis of the political lie about the Euro crisis and the understanding that many Germans seem to lack: "The fundamental problem for some is simply German economic strength." And yet Kaletsky's argument is not unreasonable, seeing how mistakenly the concept of economy is used.

Economy stands for itself; Economic strength, however, needs buyers. There is no getting away from this, and it is incomprehensible why politics uses these terms for re-election purposes and at the same time destroys the livelihood of the people. Prof. Dr. Wilhelm Hankel sees in the journal EURO (Issue 3/2012) how there will be more inflation in the supporting countries, and deflation in the supported countries. This dilemma cannot be solved in a currency union, not even by a pact. The only consequence can be the uncontrolled dissolution of the Euro zone, or Chancellor Merkel reconciles herself to the previously excluded alternative of the amendment of the European Treaty (constitutional amendments in the national states), so that Euro bonds are permissible. The effect of this would be the European community of liability, which could act without consequence until the Euro crashes.

The debt brake provision enshrined in the German constitution states: Expenditure must not exceed government revenues. If he talk is now that the respective national deficit may not amount to more than 0.5 % of the economy, this is another piece of window-dressing. Merkel's band can draw a joker here to circumvent the debt brake: Subsidiary liabilities and guarantees via securities granted by supporting countries (such as Germany for example) do not appear statistically as current liabilities. They are deferred as future debt, and realised only when supported countries actually become insolvent. In this respect, the debt brake, considered economically if not strictly legally, is circumvented.

The debt brake applicable to the fiscal pact, which is to be applied by all Euro countries after the German model, was initially rejected by the Euro countries. On 31st January 2012 however, they surprisingly agreed. This took place via a Euro vote. The fiscal pact even makes provision for penalties for countries in deficit.

This sounds good, but will have no consequences. The fiscal pact will remain a paper tiger.

The establishment of sanctions can take place only if a contracting state sues before the European Court of Justice. This provision is contrary to what else applies in Europe. In many ways, the European Commission is the motor of European unification. It repeatedly brings infringement proceedings before the European Court of Justice when member states infringe European law. Here the European Commission takes little account and attacks sensitive privileges. But the Commission cannot bring action on the basis of the fiscal pact! Only the contracting states have a right of action.

They will not however bring any action, because if these actions are intended by supporting countries, these have to note that they will have to provide even greater support in the way of the rescue package for the supported country if sanctions are imposed. Because this supporting country has demonstrably no resources of its own, other than those from rescue packages, in order to remain solvent. Actions brought by supporting countries against supported countries burden the supporting countries with regard to the fines, which will correspond to 0.1 % of their gross domestic product. A supporting country would only be shooting itself in the foot by bringing such an action.

Supported countries will therefore not consider bringing action against supporting countries - even if the prerequisites exist – since they are dependent on the supporting countries and under no circumstances want their financial backers to be burdened with penalties on such a scale.

Supporting countries will also hardly want to bring actions against each other if the debt brake is exceeded - this is happening anyway in economic terms in Germany by means of rescue packages etc. - especially since these penalties will not be able to be settled with guarantees, but it will have to be a matter of cash payments - which of course can also again be financed through loans, for which guarantees are given. But then everything would be stood completely on its head.

On the other hand, it is inconceivable that supporting countries working closely together at the European level, such as Germany and France, would bring actions against each other. This would be impossible anyway.

Even if it comes to an action before the ECJ in an exceptional case, the court will only come to a verdict years later. The verdict is then rather of theoretical interest, but it cannot change anything about the wrong debt policy.

In addition, the fiscal pact - other than originally planned - no longer has to be incorporated into the national constitutions. This eliminates another potential control mechanism. It could be for example that planned debt relating to the debt brake could be regarded by the opposition as a breach of law, and the opposition then calls for proceedings before the respective constitutional court. If the fiscal pact is but not enshrined in the constitution, then this cannot happen.

The question therefore remains as to why such an agreement was made at all if it will never be implemented?

In any case we cannot hope for the good will of the governments. They will always find loopholes if they think they need money. Experts will justify the creation of new debt and construct emergencies to conceal the failed debt policy. And courts will shy away from courageous decisions and refer to the priority discretion of politics.

And whether the sanctions, if they are ever imposed, make economic sense, is more than questionable. None of the considerations take into account that the tasks with all dictated austerity measures and savings reforms for the supported countries, even if observed, do not need to lead to the desired result. If it is considered that in some supported countries, especially in southern Europe, in terms of their revamped savings reforms, recessions will occur, and that in the supporting countries a similar situation will arise due to savings measures, but is overlaid and delayed by the enormous glut of money, only inflation can follow. This will result in the increasing impoverishment of the people of Europe.
On the 2017 Federal Elections
No Restraint
The IMF
Trump’s Election is a Warning for Germany’s Political Parties
Year-End Selection of Texts
CDU Party Congress 2016
IMF Crisis Management a Failure
Deployment of the Bundeswehr in Germany
Crucial Test with International Implications
Ever Closer?
On the 2016 German State Elections
Revealed: Colossal Public Fraud in Germany and Europe
Nettlesome Politics
The Press
As We Begin 2016
Legal Action
Clever Shifting Tactics
New Charges in an Ongoing Saga
Evil under the Sun – The G20
Political Paradox
Game over for Merkel
The Greeks are making history
Clash of the Titans
Elmau
FIFA Roulette
The Beast Roars
The Silver Lining
Pulling in Opposite Directions
The Deafening Silence
Texts on the liquidation of the euro
Wasting Time
New Rules, Same Impetus
Call in the Army
Politicians Run from Themselves
Tax Policy Loopholes
Europa without the Euro
Alternative to the Euro
Hellas
Easter 2015
Deflation
Tidying Up
Insolvency Statute
Heiner Geißler
Germany Corrupt No More
India’s GDP growth
PEGIDA
Rescue Fever
Unbridled Power
Heaven on Earth
Getting down to the Nitty Gritty
1-0 in Favour of the Opposition
The Junk Currency
Oil War 2014
Golden Goodbye
The Ukraine Aid Debacle
World Tax Authority
Demonstrations in front of the ECB
Promises and Trust
Democratic Deficits
Nothing is safe
Fit for a Museum
At Christmas 2014
Family Voting Rights
Clueless Advisors
Pension Debacle
The Balanced Budget Lie
The Wimpy Currency
Acid Test
Two Very Different Issues
Who is Ruling the World?
More Clandestine Employees
The Recession Principle
Is This Really Better?
Kohl and Merkel
Debt Brake Debate
Reforms
Merkel and the democracy
Tax Losses
Totalitarian Collectivism
Regrettable Incident
Wulff’s Attorney Brings New Legal Action
The ECB in the Crossfire
Former Constitutional Judge Sceptical
A Lovely Gathering of VIPs?
German Banks Need Money
Stumbling Match
Deutsche Bank under Pressure
The Crow …
Papier‘s Morality
Shot in the Arm for the Economy
Political Crime Novel
ECB Soon to be the Eurozone‘s only Bad Bank
Demonstration for Democracy
Award for responsible action
Recommendations in case of a crash
Final move
European rating agency
The last elections
Hartz-IV is enough
Mr. Putin, please cry!
No longer worth anything
Free trade agreement
1st September 2014
The election in Saxony
Special European Summit
Bankers are counting on it
Debt cut á la state
Immigrants criticised
Unbelievable assets
Bundesbank closes Money Museum
Lawsuit against bank union
Only the penitent …
Sustainability
ECB stability report
Cowardly warriors
The financial industry has learnt nothing
Bribery of MP’s
They are also blind on 2.
The Stability Pact
Avoid Obama
Thoughts on Merkel's birthday
Megalomania’s children
Niebel’s Low Points
On László Andor’s speech
Snowden should say nothing
Reduction of interest rates
OECD report
A great blunder
Germany as a driver of growth?
Farewell, housing allowance
Sick health service
The EU Commission knows about popular deception
Draghi gives a warning
Self-praise stinks
A forced affair of the heart
Drawn from left to right
Hollywood
The aftermath of an election
65 years of the Basic Law
Hypocrisy
Who will save the life-insured?
Minimum wage
Minimum Wage I
Minimum Wage II
Minimum wage III
Minimum wages IV
The minimum wage V
Arise for revolution
The European elections are an act of dictatorship
Switzerland and Europe
Protection of the Constitution and services
The impossible triangle
The standard pension
Schäuble tricks again
The old “Welt”
The Union wears the trousers
Zeroes – commas – nothing!
Book publication
Court Condemns Politicians
The highest German court
Parties for the European election
Freedom of the press
Dispensation from obligations
European Elections
European election
The resurrection of "doctor" Schavan
Per capita assets
Federal Constitutional Court – Accrued gain and provision
ESM - ECB - the flood of debt
The hysterical Republic
Review proceedings against Wulff
The own goal of the High Court
Judges helpless
Schavan and zu Guttenberg
Human rights
Counterfeit money and false fifties
Fight against tax fraud?
New fellow citizens
So many ministers
Democracy the Turkish way
But will every European pay?
Data protection
Tax havens
Free Trade Agreement
Data thieves at work
Expropriation of the citizen
Soon without cash
NSA Investigation Committee
Dutch rating agencies
Officials in the German Bundestag
Snub for banks
Repeated deception of the people
De-dictatorisation
GroKo = Große Kosten (great costs)
The sluts of the SPD
What the grand coalition will present to us
Federal Public Prosecutor versus the NSA
The new “tithe”
The people’s sense of justice
Trauma of coalition negotiations
When will it finally come, the Constitution for the united Germany?
Investors and savers
Finally, Mr. Ströbele
Church and State
Left party politics
Is the Constitution democratically legitimised?
Needs must when the devil drives
Wiki-Leaks +
The CDU and its donors
State of emergency
High finance and party-politics
People and stock market
The person and their office
With full intent
Elections
Private retirement provision
It’s all about the quota
Deception over the Fiscal Pact
The failure of the government
Not really more money for the unemployed
Surpluses in health
Euro rescue by means of inflation
Asylum for the Chancellor
Discussion over democracy
Complaint against ...
The apparent vote ...
Courage, Mrs. Merkel!
Paid E-mailing
Only one month to go
Siegfried the Brave
Draghi wants more...
Fraud by forecast
Germany illegitimate
Election gifts
Left out
Youth unemployment
Public relations...
Leaders in politics
The rubble women
Every effort ...
Berlin Joint Welfare...
The casino of Cyprus
Ratings and bank union
A Conservative party...
Lies
Employees of public...
Bank union
lose links and ...
Democracy in Germany
Close-up
Our money is not safe
Out of order
More spirit of ...
TV duel
France in need
Finances in the ...
False average
The fight against corruption
Parliamentary absentees
Bravo, Mr. Weidmann!
At the end, Mrs. Lagarde?
On the subject of Cyprus
The wool has been ... I
The wool has been ... II
The problem of inertial ...
Schroeder’s homage
Gay marriage: only policy
Gauck
The budget in NRW was ...
Penalties for bankers
Bank bailout fund
The female quota
G-20
News about the Euro rescue
The war of the currencies
Stalemate in Italy
Merkel’s interests
NPD ban
Rating agencies
War-games again
S&P’s in the stocks
Political control
Mrs. Schavan, how...
Begging at a high level
Spain in the trend
Treaties between friends
Joint determination...
The most blatant lie...
Lower Saxony has...
Elections in Lower Saxony
Why have we called...
Something is rotten...
Secret agreements
Wulff has done...
MSK = DSK
Outcray against the ...
Politics is breaking ...
In the trap
The Target-2 system
Euro-political...
The Devil returns home
Members’ salaries
The last
Bankruptcy regulations...
The energy revolution
Bank rescue
Inactivity of the ...
So much eeriness at ...
Bad management is ...
Goodbye, Greece
General strike
Atlantis
Media in a fog
Euro Finance Week
The Berlin Bazaar
Careless love
The suffering basis...
Rescue packages ...
Election of the ...
ZDF
Steinbrück’s earnings
EU Summit in October
Aurea mediocritas
The veneering process
They have lied to us
All scapegoats together
Double accounting
Tour de force
Testament of poverty
Disservice
€ 8 more
In honour of Helmut Kohl
People have no respect
Nonsense and insanity
Pensions are not safe
Serial Merkel
Bad, bad, bad
People are not ...
Kohl’s merits
Deliberate false statements
Outwardly fine, inwardly...
DDBRD!
Gabriel goes underground?
Kohl’s Ghost
Hopeless bankruptcy delay
Open for business
Outcry against the ESM
2nd Outcry against the ESM
Fiscal Pact
Government bonds
ESM
Germany is bankrupt
Loss of democracy
Deception of investors
Merkel Referendum
The election in NRW
Ongoing election campaign
The aberrations of E. Pols
Speaking ban
Criminal complaints
Fear of publicity
Top experts
Real, direct democracy
Get rid of German President
Back-door politics
Competition for the office
Angela's wrinkles
Vultures gather
2011- System correction
Rating Agency Foundation
Contact men
Leading politicians
Transfer union
Membership fees
Referendum S21
Business–Banks–Politics
Misplaced doctors
State Trojan horses
Petitions ignored
The lever effect
Bonds by the ECB
Member states
No access
Political lobbyism
Conditions like in the East
Transparency
Sponsorship funds
Development aid
The transfer procedure
GER is doing itself away
Rescue packages
Supercrash in USA and EU
The 'Soli'-Lie
Vladimir Putin
A plea for direct democracy
Distrust of the Chancellor
More control
Flight of capital
Euro summit
It's war
The C in CDU and CSU
Deceit and lies
Germany getting screwed
Investments in countries
The illusion of a ...
General statements
Democracy-...-Dictatorship
GER-insurance society
Debt brake
Costs of members
Deceit and lies
Retirement provision
Medal of Freedom
Euro-thugs / Polit-thugs
We are the people
Security authorities
National debt and ...
Apology from the bankers
The Merkel Adventure
Party Competences
Chancellor
The East-Mark, ... ,Euro
Sister Merkel
Ruck-Rede & Oath of Office
The casino operation
Rescue Reactor
Euro rescue
Japan
spot
spot