A hardline proposal has been signed by the German Finance Minister, Wolfgang Schäuble and the Minister of the Economy, Sigmar Gabriel and has been delivered to the European Commission.
Germany wants to tighten its grip on the reform process in the euro area, arguing that the recommendations of the European Commission are binding and that countries that do not comply within a specified period will be penalised with cuts in funding.
The German ministers submitted the proposal in late October to the European Commission, the Eurogroup president and the presidency of the European Union (EU), currently occupied by Italy.
The goal of the two German ministers is to make the process of monitoring and imposing sanctions binding, effective and transparent so that the countries such as Portugal and Greece actually apply the necessary fiscal consolidation and reforms which will help sort out their economies and hence the health of the whole European region.
If the undertakings given by the states are not met, the two German ministers suggest financial penalties are imposed and cuts made in the endless stream of free money that these financially incompetent countries have become dependent on.
According to the German hard-liners, certain national governments have rather "lacked effort" in carrying out the necessary recommendations from Brussels and the debate on the need for reform actually has achieved only "limited success."
The latest partnership agreement between the European Commission and Portugal will see €26 billion in funds arriving in Lisbon between 2015 and 2020, described the former president of the European Commission, José Manuel Barroso, as “a barrel-load of money.”
The risk that Portugal will waste this money, as it has so skilfully wasted past billions to the benefit of only a few, is great.
The German proposal to fine 'reform inefficiency' could cut off the flow of most of the funds earmarked for Portugal.
Comments
Set the height of the bar - and then just step away. Turn their backs on any country that does not reach that standard.
Portugal, for example, totally wasted the first two decades and has only in the last few years even attempted to be 'European' and in the Union.
So much wasted opportunity. But meaning that there is a 'Negligible' amount of Portuguese input into Brussels. Nothing substantial that tells us that this country is in the EU.
So - given the increasing entirely unfair anti-EU feeling here, letting Portugal - find its own path becomes a distinct possibility.
There is no sense at all keeping Portugal in the EU just because its sole contribution is that it has a strange off-world language made up primarily of whistles, grunts and clicks.
Matching every 10 euros brought back with 1 euro from the EU is an excellent ratio.
We must hope that the administrators of the GES / Rioforte and BES break ups are all northerners. So professionally and dilligently dig deep into and track down all this money that never made it to Portugal !
And today we learn that the Novo Banco sell off will be steered by the European Central Bank. More good news as NOVO Banco has apparently also saved some ex-BES secrets.
The ECB then helping check that this off-shore money actually arrives on-shore and does not just get shifted somewhere else off-shore. As would be expected if it was left to the Portuguese.
We await to hear further good news ...
At all levels they are hard wired to 'cheat the system'.
For example - anyone who has discussed their business plans with Portuguese regional Development and European Grants specialists will meet exactly the same thinking as at the Municipal. What is in it for us ?
It is made clear that without their inside help (a 'contribution' ?) your application 'may have difficulty'. Later you realise a competing plan for funds has copied yours. Then ask around for quotes to build or adapt your project. Valor das Obras becomes meaningless.
Look around at any public EU investment here and note there is an adjudicator. The people who assess the costings ... the Regional Development guys (or their mates) acting as Consultants?
And these consultants then pop up again as consultants on the private sector grant applications !!!
Get this wasted money back on-shore, Jerry !! Remember the Submarine 'consultants' !
Match every 10 euros brought back with 1 euro from the EU.
I am fully supportive of a combined Europe as a trading organisation and possibly in establishing product standards (safety and compatability for example). But I don't want open doors for residency or laws imposed on member countries by Brussels/Strasbourg. Nor do I want UK taxes contributed at the rate of £1.5 million an hour (net of receipts) to support other countries in the "union".
Regarding unaccountability, any business in the EU whose accounts had failed audit every year for (I think) 18 years would be closed down and the directors would be prosecuted and banned from future directorships. This should be applied to the EU right now.
As always we remind our readers that the UK and Portugal are vastly different in terms of social and economic development.
Any UKIP equivalent - like the 1974 'Revolution' would be run by the elite - so useless !
The UK's primary complaint is that much of the EU (the south) is not just 'not yet up to speed' - but that it is in many ways unchanged from the day it entered the EU. Just that the elite is individually millions richer from trousering EU handouts.
There is still no open access into other peoples markets. No Competition! AT ALL LEVELS there are restrictions that unnecessarily delay the easy market entry which the UK allows other EU states. Weakening the EU.
Then bundle in - in addition to incompetent and / or dishonest politicians, judiciary, legal services, government administration and policing - outright racism in the Iberian states against the British from historical colonial grievances and you get an idea of the hopelessness of the UK wanting 'reform'.
The EU is sick !
It may be that he in principle approves of a combined Europe, but finds the EU as presently constituted unacceptable. If so, then I agree with him. The pity here in Portugal is that there is no democratic vehicle by which we may express our disgust. Not even a UKIP.
This wonderful merry-go-round of undemocratic incompetence that calls itself the EU trundles on whilst robbing us blind!