Ireland Exposes the Fundamental Flaw of the Eurozone, it’s not a True Union

Posted by PITHOCRATES - January 29th, 2012

Week in Review

Here’s a little Déjà Vu.  All the way back to 1787 Philadelphia.  Before there was a United States of America.  When there was only a weak confederation of states.  With representatives from each state sitting in the Congress of the Confederation.  Where each state had an equal vote.  And all changes to the Articles of Confederation required unanimous agreement from all states.  And often times tiny little Rhode Island could alone scuttle new legislation.  And did.  Often.  Because they had a profitable seaport.  And liked charging tariffs to those who didn’t.  It was quite lucrative.  And paid a lot of Rhode Island’s expenses.  Making their citizens happy.  Because they didn’t have to pay much in taxes.  Thanks to those tariffs.  Flash forward to the present time and you see the same problem.  Not that Ireland is like Rhode Island.  But that problem of requiring unanimous agreement from all member states in the Eurozone (see Irish voters would back EU fiscal treaty: poll by Conor Humphries posted 1/28/2012 on Reuters).

European leaders are expected to agree on the fiscal compact on Monday in a bid to regain market confidence in the public finances of the 17 countries sharing the euro.

Irish citizens, who are entitled to vote on any major transfers of powers to Brussels, are seen as one of the biggest obstacles to overhaul of the bloc. They have twice rejected changes to EU treaties before voting through amended versions.

The confederation didn’t work for the Americans.  Which is why they met in 1787 in Philadelphia to draft a new constitution.  And create a new federal state.  Something beyond a monetary union.  One that was a true union.  Monetarily.  And fiscally.  Which is why the United States of America ‘were’ truly untied.  And worked.  The ‘were’ being changed to an ‘is’ following the American Civil War.  Emphasizing that union.  While the ‘united states’ of Europe are not quite so united.  And why the Eurozone is struggling to survive.


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