http://www.businessweek.com/globalbi...615_086025.htmGovernments which breach European Union budgetary guidelines should have their EU voting rights "suspended" to prevent any resurgence of the debt and euro crisis, France and Germany said last night.
The EU is becoming deeply divided between States who can pay their way and States that need bailouts. France and Germany, as the main States likely to be called on to fund bailouts, decided yesterday that they will insist that bankrupt states lose their EU voting rights.
This move follows last week's agreement that national budgets will go to the EU for approval before going to National Parliaments.
Sarkhozy would like to introduce this radical and punitive measure without a Treaty amendment.
It seems to me extraordinary that budget approval has been nodded through without demand for Treaty amendment. The proposal to punish states for economic choices/predicament would further increase the democratic deficit in the EU.
A country in temporary economic difficulty would be under enormous pressures to go for a deflationary rather than investment/stimulus solution.