Fury Over Plans To Give Brussels More Powers To Meddle In Nations’ Economies express.co.uk

BRUSSELS needs to be given more powers to meddle in the economies of nation states and set budgets according to a group of leading European nations – in yet another step to a federal Europe.
The EU group – which included Ireland and Holland – demanded the eurozone’s bailout fund was handed more powers to deliberately intervene in national budgets, in a move that will provoke fury among eurosceptic member states who reject further intervention by Brussels.

In a document published yesterday, 10 countries insisted that the European Stability Mechanism (ESM) should be given the authority to check the finances of eurozone countries.

But the move would give greater power to Brussels, as the European Commission is currently the only EU institution that assesses eurozone economies.
The ESM – which was set up to help euro countries in financial crisis – must be given “full access to information of the economic and financial situation” of eurozone governments, according to the document.
The powers would apply at all times, not just during crises, the Financial Times reported.

The paper was signed by the Netherlands, Ireland, Sweden, Denmark, Finland, Latvia, Lithuania, Estonia, Slovakia and the Czech Republic.

Under the controversial plan, tests of government’s debt sustainability and ability to repay would be completed before any aid is granted by the ESM.

Supporters of the proposals have said the powers are crucial for the ESM to carry out its work
It comes at a time when Italy, the eurozone’s third largest economy, is locked in a bitter deadlock with the EU over the country’s 2019 budget.

Italy’s eurosceptic coalition government – made up of the anti-establishment Five Star Movement and right-wing League – has proposed a new budget which includes higher levels of borrowing and spending despite its huge debt.

The draft budget would increase the deficit – the amount spending exceeds revenue – but the EU has rejected this as it breaches previous agreements to reduce the deficit.

And the budgets of member states must be approved by the EU, prompting the stand off between Italy and the bloc.