This blog will be about Van Rompuy later, but I would like to start to touch upon the agreed European banking oversight and what the consequences will be for European consumers and (small) businesses.
With another European body overseeing the European banks, lots of questions arise: What is the definition of a European bank, banks with their HQ in EURO countries? All banks operating in Europe? All companies that have a bank license? And what will be the focus of the oversight? Only European activities or also activities outside of Europe? Are Asian and (South) American branches in or our of scope? And most importantly, what are the sanctions? Will the European regulator be responsible for (revoking) licenses? Will Brussels e.g. tell Spain to nationalize bad banks?
The focus on banks as polluters of the financial system is understandable, but the measures aren't. Adding another layer of regulation will only affect the bank's customers, consumers and (small) businesses, as the banks will charge them for the incremental costs of complying to the new regulations.
For the Big Four and other consultants to the industry, as for the Brussels area, this decision will be very favorable, as it creates new business and new jobs. Another 'glass and steel' tower will emerge in Brussels, on the perverse boulevard of buildings that already house all kinds of European officials. Every time I visit Brussels, there are new buildings popping up and they all have EU related names on them.Europe and the EURO create jobs! Well, yeah, but in a very small area in a country that is soon to be officially divided due to multiple languages and -cultures that do not want to be united anymore. The irony is as painful as the continuing efforts to try and keep the sinking EURO project afloat.
Now over to the President of the European Union, the non-elected Belgian grey mouse Herman van Rompuy. He is drafting a vision for a united Europe, a true European political union (including a fiscal, legal, military, monetary and financial union, with a unified policy for immigration, social welfare and pensions, gay rights and medical ethical affairs, drugs and prostitution, agriculture and fishing, industry and commerce and - the best one - European culture).
Van Rompuy as the new Julius Caesar, Napoleon Bonaparte or Adolf Hitler? They all had a vision of a unified Europe, but did not succeed because European cultures are too different. They do have one thing in common, though, they all do not accept being forced to adjust to other cultures. That is when Europe erupts and wars are being fought. Well, with the Nobel Peace Price in his pocket, the grey mouse thinks he should try it anyway. The Ace up his sleeve, of course, is the threat of the collapse of the Euro, which he uses every time a country tries to oppose the idea of a federal Europe. The current European leadership is holding each others' hands like frightened kids after a dropping in a dark forest. They are slowly, but surely moving in the direction that Van Rompuy is envisioning. But their respective people will not. The people of France will not. The people of Holland will not. The people of Greece will not. The people of Finland will not. The people of England will not. The Scotts, the Flemish, the Catalan and the Basks are fighting for independence, they will not. It is not going to happen. Maybe in Brussels, but not in the countries of Europe.Van Rompuy is trying to lead Europe towards a political union. But leaders need followers. Without followers a leader is just a guy taking a walk. It is my strong belief that once the people of all European countries get their democratic opportunity to vote for or against this vision in a referendum, Van Rompuy will be just that guy, taking a walk.
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