The draft compact on fiscal stability is dragging out and is designed to hold existing members hostage who are dependent on bail-outs. Only those who sign up to the compact will be eligible for monetary support from the European Stability Mechanism (ESM). This effectively sends a message to the Irish electorate: vote Yes or forfeit European support.
It has also divided the Czech polity, with Eurosceptic parties favouring a referendum and, no surprise here, Europhile parties preferring a parliamentary solution. The arguments echo former debates in the UK: an intergovernmental treaty does not confer powers to the European Union or the subject is too complex for the simple minded folk who actually voted them into office. This leads to a simple truism: European politicians with a charisma bypass prefer an electoral bypass.
The mischief makers, France and Germany, make life even hotter for the Eurosceptics with a new six point plan for the summit in late January. Get your veto ready, Cameron! They want a common corporate tax base, co-ordination on other taxes, Commission control over regional funds (so they can be redirected to the subsidy junkies on the periphery), a Tobin tax and the lowering of labour taxes. The crisis is accelerating the shift towards a two speed Europe and we are on the outside looking in. Such integration cannot be passed in this Parliament.
