THE EUROPEAN Union on 29 June agreed changes to its European Stability Mechanism. The ESM has become a permanent eurozone bailout fund, not for nations or governments, but for banks.
It can now give directly to failed private banks funds intended for indebted governments. Taxpayers’ money is again hijacked to prop up failed banks. Once again, workers subsidise private profits and bonuses.
There is no limit set to the demands made on taxpayers. Workers face unlimited liability. Its constitution says, “ESM Members hereby irrevocably and unconditionally undertake to pay on demand any capital call made on them ... such demand to be paid within seven days of receipt.” (Article 9.) Its Article 8 says, “The authorised capital stock shall be 700 billion Euros”, but Article 10 says, “The Board of Governors ... may decide to change the authorised capital and amend Article 8 ... accordingly.”
Governments cannot take action against this unaccountable body. It is beyond review, beyond the law.
As its constitution says, “The ESM, its property, funding, and assets ... shall enjoy immunity from every form of judicial process....” (Article 32.)
Its “Governors, alternate Governors, Directors, alternate Directors, as well as the Managing Director and other staff members shall be immune from legal proceedings with respect to acts performed by them in their official capacity and shall enjoy inviolability in respect of their official papers and documents.” (Article 30.) ■