EU ready to impose economic sanctions on their own member states if they don’t instill more austerity on their people
As the world economy rushes headlong towards its next potential crisis, bureaucrats at the ECB are preparing for this by threatening to fine and implement economic sanctions against their own member nations if they do not conform to demanded financial reforms recommended by the central bank.
Note that the threat of fines and sanctions are being made against EU members not over approved policies, but for simply not following recommendations.
The European Central Bank (ECB) has called for large fines on EU countries that fail to adopt the blocâ€™s economic reform recommendations.
In aÂ reportÂ published on Monday, the bank expressed concerns over the sluggish pace of economic reform in the eurozone, saying it could hurt the blocâ€™s longer-term growth and stability.
According to the ECB, governments should be fined up to 0.1 percent of gross domestic product if they repeatedly fail to address economic flaws identified by EU authorities.
The measure is part of a new risk-monitoring system known as the macroeconomic imbalances procedure which was designed to prevent worrisome economic developments such as high current account deficits, unsustainable debt levels, and house-price bubbles.
â€śThere seems to be a strong case for applying the corrective arm of this procedure for all countries with excessive imbalances,â€ťÂ said the ECB.
The EUâ€™s executive arm, the European Commission said the number of countries in which EU authorities have identifiedÂ â€śexcessive imbalancesâ€ťÂ is at an all-time high. France, Croatia, Italy, Cyprus, Portugal, and Bulgaria, are among those countries. â€“Â Russia Today
The majority of these recommendations call for sovereign nations to downsize their debt, work towards lowering their trade imbalances, and of all things implementing price controls to stop housing bubbles that were the fault of the ECB’s Negative interest rate policies to begin with.
In other words, the ECB wants several nations to begin implementing austerity on their peoples.
We have seen what austerity has done to nations such as Greece, which has remained in deep recession ever since the 2008 financial crisis, and has been unable to get out of their debt due to the stifling of economic growth that austerity always creates. Â And perhaps it really isn’t surprising that one member state (Britain) has already voted to leave the EU, and another (Italy) is in serious talks to do the same, primarily because the actions undertaken by the Union’s central bank have failed egregiously, and now they are looking for scapegoats to blame in the form of the countries themselves.
Kenneth Schortgen JrÂ isÂ a writer forÂ The Daily Economist,Â Secretsofthefed.com,Â Roguemoney.net, andÂ Viral Liberty, and hostsÂ the popularÂ youtube podcastÂ on Mondays, Wednesdays and Fridays.Â Ken can alsoÂ be heard Wednesday afternoons giving an weekly economic report on theÂ Angel Clark radio show.