Posted Nov 12, 2018 by Martin Armstrong
Italy is arguing that it will retain its budget and refers to how both France and Germany exceeded their budgets and the Commission disregard the Maastricht treaty rules in the case of both countries. In the budget dispute, the Italian government was not deterred by the threat of penalties from the European Commission. Finance Minister Giovanni Tria said last week that Italy would commit “economic suicide” to stick to the plans of the previous government to reduce the deficit. Once again, anyone who really reviews the EU structure in an unbiased manner will see that the crisis stems from the plain fact that the FAILURE to consolidate the debts from the outset means that the EU Commission sticks its nose into every budget of each member.
In the USA the result of a federal budget and debt means that each state is on its own. Their budget is of no interest to Washington. In the case of the EU, each member state prints its own Euros – not the ECB. That means the EU Commission acts like a dictator applying the same rules to everyone regardless of the local social needs. This is why the Euro will fail. It is NOT a structure remotely similar to the USA despite they pretended it would reap the same benefit by just a single currency.
Eventually, Ital will be forced to choose between its people and the dictatorship of Brussels. That will be another whole level of political chaos next year.