Why Germany simply cannot leave the Eurozone - they need the EURO SERFS .....
http://yanisvaroufakis.eu/2013/04/12/germanys-continued-dependence-on-the-eurozones-stragglers/
Germany’s continued dependence on the Eurozone’s stragglers
12APRBritain launches legal challenge to Financial Transaction Tax
Britain has threatened to provoke a fresh row with Brussels by launching legal proceedings against a €35bn tax on financial transactions agreed by 11 European Union members earlier this year.
6:01PM BST 19 Apr 2013
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The UK lodged the challenge at the European Court of Justice in protest at the spillover effects the private agreement might have on the UK economy.
Although the FTT will only be adopted by the 11 euro area signatories, which include Germany, France, Italy and Spain, it will hit investors worldwide.
As it stands, any trade in euro-denominated financial instruments and any transaction with a bank from the 11-nation group, or one of its overseas branches, would be subject to the tax – regardless of where the deal took place.
Speaking in Washington while attending the International Monetary Fund’s spring meetings, George Osborne said: “The UK has launched a legal challenge to the European Commission proposal to a Financial Transaction Tax.
“The British Government [is] not against financial transaction taxes in principle – we have stamp duty on shares – but we are concerned about the extra-territorial aspects of the Commission’s proposal. That concern is shared by some other countries.”
UK financial institutions, as well as international investors from Japan to the US, have been in uproar over the plan. Analysis by the City of London has found that the tax would add almost £4bn to the cost of issuing UK government debt this year.
Like the UK, US officials are also pressing Europe to curb the “extra-territorial” effect. Tom Quaadman, vice-president for capital markets at the US Chamber of Commerce, has said: “There is a potential for regulatory overreach that could harm the global economy.”
The FTT is being adopted by the 11 countries under the European Union’s “enhanced co-operation” regime, which allows groups within the 27 members to press ahead with joint policies without unanimous support.
However, under Article 327 of EU law, other member states have a right to protect their economies against any impact such agreements might have on their economic interests.
As the City plays such a vital role to the UK economy – and because a large share of euro transactions go through the City and many European banks operate in the capital, Britain could be disproportionately hurt by the new tax.
In principle, the effect would be the same in New York, Tokyo and Singapore – but the impact would in practice be less severe.
The UK Government hopes amendments can be made to the tax as it stands before becoming law, and is currently in constructive negotiations with Germany and France. It has launched the action against the European Commission’s “authorisation decision” as a form of insurance policy in case the discussions fail.
A Treasury source said: “We are confident we will find a resolution.”
The legal action is the latest in a long list of recent skirmishes with Brussels, including a battle over the EU budget, David Cameron’s veto of the EU treaty in 2011, and his pledge to hold and in/out referendum in 2017.
Under the current proposal, agreed in February, the FTT will be levied at 0.1pc on equity and debt transactions and at 0.01pc on derivate transactions within the 11 member group.
It is expected to raise as much as €35bn a year. The European Commission has estimated it could reduce economic growth by a total of 0.5pc over the next 40 years.
Italy's 87 Year Old Outgoing President Attempts To Break Political Impasse, Will Seek Second Term
Earlier today the fifth consecutive round of presidential voting in Italy failed to produce the sufficient majority for the country to elect a president courtesy of its fractured political system, especially following the announcement last night from the PD's leader Pier Luigi Bersani that he would quit his post after a president is elected. More than 440 blank ballots were cast in the fifth ballot today, with the leading vote-getter Stefano Rodota -- the candidate of Beppe Grillo’s 5 Star Movement -- at 210. Shortly thereafter an ingenious solution has emerged: reelect the current figurehead president Giorgio Napolitano for a second consecutive 7 year term so if not a prime minister, Italy, which has devolved into total political chaos since the February 25th inconclusive elections, the country at least has a president. There is one problem: Napolitano is 87 years old.
Perhaps the prospect of a 95 year old president in 7 years is precisely the impetus the country needs to shift its economy into overdrive?
From Bloomberg:
Napolitano, 87, who met with caretaker Prime Minister Mario Monti and representatives of the Democratic Party, Silvio Berlusconi’s People of Liberty party and the Northern League today, said “he can’t ignore responsibility toward the country,” according to an e-mailed statement.The sixth round of voting to elect a president is scheduled to start at 3 p.m. in Rome. The fifth ballot earlier today failed to produce a successor to Napolitano. More than 440 blank ballots were cast in the fifth ballot today, with the leading vote-getter Stefano Rodota -- the candidate of Beppe Grillo’s 5 Star Movement -- at 210.A candidate needs 504 votes to be elected. Napolitano had said earlier this year that he wouldn’t accept a second seven- year term. Italian Democratic Party leader Pier Luigi Bersani failed to build support for ex-premier and former European Commission President Romano Prodi, who fell short of a simple majority in the fourth ballot yesterday. Bersani announced after that vote that he will resign as PD leader after a president is elected.If Napolitano is re-elected, he will play the key role in trying to end the political impasse caused by inconclusive elections February 24-25 that failed to produce a viable ruling coalition and led to a hung parliament.
Bloomberg also adds that according to media reports, the octogenarian who is older than Warren Buffett, has the sufficient number of votes to be reelected in the 6th round of voting which will likely take place shortly.
Yet while the presidential election is largely a distraction, and now, a farce, it is the problems in Italy's Democratic Party (PD) that are now center stage, following what appears to be a complete implosion in the party that until two months ago was certain to have the necessary public support to elect the next prime minister.
From Reuters:
Center-left leader Pier Luigi Bersani announced his resignation on Friday after party rebels sabotaged two separate candidates he had backed for state president, deepening Italy's political chaos.Bersani told a meeting of parliamentarians he would quit as Democratic Party (PD) leader as soon as the election of the next head of state was completed, following two dramatic days of parliamentary voting in which successive center-left candidates were scuppered in secret ballots."He accepted his responsibility after the disgrace of what happened," Paolo Gentiloni, a senior Democratic Party parliamentary deputy said after Bersani's announcement.Then disarray in the center-left, which has the most seats in parliament, could make a snap election in the summer more likely to end the political deadlock, but there is no clarity about the next moves after weeks of chaos.It is unclear who will take over leadership of the badly split party but Bersani's departure could clear the way for arch-rival Matteo Renzi, the dynamic 38-year-old mayor of Florence, to take over.Bersani's announcement came shortly after former Prime Minister Romano Prodi announced he was pulling out of the race for president after more than 100 center-left electors disobeyed Bersani's instructions to vote for him in parliament.It was the last of a series of humiliating setbacks for Bersani and blunders that have shredded his ability to hold the center-left bloc together.The collapse of efforts to secure the presidency for Prodi, a respected international figure, underlined the deep fractures running through politics in a country still seeking a government nearly two months after February's inconclusive general election."The politicians should be ashamed of what they're doing to the country. Today we're seeing a level of irresponsibility that goes beyond all limits," said Diego Della Valle, head of shoe group Tod's, one of Italy's most successful clothing companies.
The biggest winner as a result of all of the above? Silvil Berlusconi of course, whose public support is soaring concurrently with the return of political chaos front and center to Italy, as well as a return to aphorisms uttered previously by the infamous Bunga magnate such as these:
"I am without doubt the person who's been the most persecuted in the entire history of the world and the history of man.""In my opinion, and not only mine, I am the best prime minister we can find today."Previously, on the same theme: "I am the Jesus Christ of politics. I am a patient victim, I put up with everyone, I sacrifice myself for everyone.""The best political leader in Europe and in the world.""There is no-one on the world stage who can compete with me.""Out of love for Italy, I felt I had to save it from the left.""The right man in the right job.""I don't need to go into office for the power. I have houses all over the world, stupendous boats... beautiful airplanes, a beautiful wife, a beautiful family... I am making a sacrifice.""In Italy I am almost seen as German for my workaholism. Also I am from Milan, the city where people work the hardest. Work, work, work - I am almost German."
And perhaps also those by Benito Mussolini:
Democracy is talking itself to death. The people do not know what they want; they do not know what is the best for them. There is too much foolishness, too much lost motion. I have stopped the talk and the nonsense. I am a man of action. Democracy is beautiful in theory; in practice it is a fallacy. You in America will see that some day.
and
People are tired of liberty. They have had a surfeit of it. Liberty is no longer a chaste and austere virgin…. Today’s youth are moved by other slogans…Order, Hierarchy, Discipline.
and...
http://www.dw.de/italys-center-left-leader-to-step-down-once-president-is-elected/a-16758987
Italy's center-left leader Pier Luigi Bersani has told his party he plans to step down after failing to push through his preferred presidential candidate. A further vote is scheduled for Italy’s parliament on Saturday.
Bersani had come under increasing pressure from his own Democratic Party (PD) in recent weeks and said he would step down as leader once a new president had been elected. On Friday, a rebellion within Bersani's center-left coalition helped prevent his preferred presidential candidate, Romano Prodi, win parliamentary approval. Bersani had strongly preferred the former prime minister, but couldn't hold together the votes.
"He accepted his responsibility after the disgrace of what happened," said Paolo Gentiloni, a senior parliamentary deputy from Bersani's PD.
Friday's vote was the fourth in a complex process that involves national and regional lawmakers. Prodi fell well short of the absolute majority of 504 that would have been needed for him to win the presidency.
'Going nowhere'
Although Prodi had been endorsed by all center-left parties in the fragile coalition put together by Bersani, and should have been able to count on almost 500 votes from them, the ex-premier only secured 395. Some 100 center-left politicians appeared to have refused orders from their own parties to vote for Prodi. Because voting takes place in secret, politicians are not obliged to toe the party line.
"It is clear that we are going nowhere with these numbers," the PD's Francesco Boccia told the broadcaster SkyTG24.
Another leading PD figure, Florence Mayor Matteo Renzi, said the vote had effectively ended the former prime minister's candidacy. The 73-year-old Prodi currently serves as the UN envoy for the Sahel region of Africa.
Fifth and sixth rounds of voting, as Italy seeks a successor to Giorgio Napolitano, are scheduled for Saturday. Usually a more symbolic position as head of state, the role of Italian president is particularly significant during times of political uncertainty; one presidential task is helping to broker talks to form a coalition government. Almost two months after a general election, Italy does not have a functioning alliance. Bersani's bloc won the most votes in February, but not enough to rule on its own.
Fresh elections are considered one likely solution. Those can only be called by a president.
http://www.dw.de/napolitano-to-run-for-second-term-as-italian-president/a-16759575
Italian President Giorgio Napolitano has agreed to run for re-election. His announcement comes after two other candidates failed to win enough votes to succeed the incumbent head of state.
After five rounds of inconclusive voting and two failed candidacies, the 87-year-old Napolitano agreed to run for another term as president on Saturday. His move is a bid to end the political impasse over electing the next head of state and ultimately to help pave the way toward brokering a coalition government.
Although Napolitano had originally planned to retire after his term ended in May due to his advanced age, he relented after Pier Luigi Bersani of the center-left Democratic Party (PD) and conservative leader Silvio Berlusconi asked him to stay on for another term. Outgoing Prime Minister Mario Monti, a centrist, had also petitioned Napolitano to stay on as head of state.
“I am driven at this time by a feeling that I cannot escape from assuming my responsibilities towards the nation, trusting that my gesture could be matched by a similar assumption of responsibility,” Napolitano said in a statement.
False starts
Napolitano’s announcement came after Bersani's PD, the largest single political bloc in Italy's parliament, twice failed to elect its candidate of choice. The PD first joined forces with Berlusconi's conservative bloc to back Franco Marini, a former Senate speaker. Many members of the PD, however, refused to cooperate with Berlusconi, ultimately sinking Marini's candidacy.
The PD then supported Romano Prodi, a former prime minister and European Commission president, but some 101 center-left politicians refused to support him in the end. After the presidential election debacle, PD leader Bersani said he would step down once a new head of state had been selected.
Political limbo
Italy has been in a state of political limbo since February's general elections, which seated a hung parliament. Although the center-left coalition led by the PD won the most votes, they did not get enough votes to form a government on their own. The PD has refused to form a coalition with the second largest political force, Berlusconi's conservative bloc. And the up-and-coming anti-establishment Five Star Movement (M5S), the third largest party, has rejected forming a coalition with any of the major parties.
Although the Italian presidency is largely a ceremonial position, the head of state has important powers following an election. The president plays a key role as an intermediary between the parties, helping to broker coalition governments. And only the president can nominate a prime minister and approve his cabinet.
“A new president will not mean that a new government will follow automatically, even less that the government will be effective,” James Walston, a politics professor at American University of Rome, told the news agency DPA. “But without a president, there can be no government.”
