The No-Name European Committee That Made the $13
Billion Guarantee to Cypriot Banks
by Gary North: The
Search for More Pork on Mars Continues
held a teleconference this evening to take stock of the situation
decision-making institution on the euro is an informal committee
of finance ministers. The committee has no official name. It has
no official power. It is not voted into office.
In the Lisbon
Treaty, which went into effect on January 1, 2009, this no-name
informal committee at last got its legal status.
1: The Ministers of the Member States whose currency is the euro
shall meet informally. Such meetings shall take place, when necessary,
to discuss questions related to the specific responsibilities
they share with regard to the single currency. The Commission
shall take part in the meetings. The European Central Bank shall
be invited to take part in such meetings, which shall be prepared
by the representatives of the Ministers with responsibility for
finance of the Member States whose currency is the euro and of
2: The Ministers of the Member States whose currency is the euro
shall elect a president for two and a half years, by a majority
of those Member States.
So, it meets
informally. It discusses questions. The Commission takes part. (How?
With what authority? With how many votes?) The ECB is invited. It
does not have a vote.
of the no-name committee has a name no one can pronounce unless
he is Dutch, Jeroen
Yet this no-name
Committee promised Cyprus banks $13 billion worth of euros over
the weekend, on its own authority, and answerable to no one in any
European parliament, including the European Union.
This is called
democracy in Europe. In Europe, democracy means: "You dumb
required the government of Cyprus to impose a capital tax on all
This was announced
on Monday by the newly elected President of Cyprus. The voters of
Cyprus went ballistic. The President of Cyprus had sworn to the
people in his inauguration address on February 28 that he would
never, ever do this.
"You dumb clucks."
of Cyprus has thrown a spammer into the works. It has refused to
impose the tax. What's this? It's democracy. The real kind.
of the no-name informal committee, which is informally called the
"Euro Group," has issued a statement. It is unsigned.
(No one can pronounce it, so who cares?) He is appalled at this
betrayal by the parliament of Cyprus. This was a secret deal, and
secret deals are supposed to be agreed to by Parliaments. Parliaments
are supposed to be rubber stamps. Who does the bunch of stooges
think they are, anyway?
this announcement verbatim from the website of the so-called Euro
Group. I also provide a translation.
that the political agreement reached on 16 March on the cornerstones
of the adjustment programme and the financing envelope for Cyprus
reflects the consensus reached by the Cypriot government with
meeting was held in secret, there were no official notes. You will
have to trust my memory. The group met with the someone or other
I cannot recall who who said he represented the government
of the reform measures included in the draft programme is the
best guarantee for a more prosperous future for Cyprus and its
citizens, through a viable financial sector, sound public finances
and sustainable economic growth.
parliament of Cyprus should rubber stamp this deal. It is best for
Cyprus citizens. Pay no attention to those crowds in front of the
Parliament shouting "no!"
that the stability levy on deposits is a one-off measure.
No body in
the Eurozone outside of the no-name group with no official power
has approved any of this. It has never happened before. It will
never happen again. Trust me.
will together with the international financial support
be used to restore the viability of the Cypriot banking
system and hence, safeguard financial stability in Cyprus. In
the absence of this measure, Cyprus would have faced scenarios
that would have left deposit holders significantly worse off.
the rest of the article
North [send him mail]
is the author of Mises
on Money. Visit http://www.garynorth.com.
He is also the author of a free 31-volume series, An
Economic Commentary on the Bible.
2013 Gary North
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