Some government leaders and commentators are advocating what they call a FEDERAL fiscal authority to tax everyone and spread this money to governments. Some call this a supranational authority. It is not. It involves reinforcing secretive, cartel-style politics.

But would a FEDERAL fiscal union and a new “authority” help at all? It would tax more money from the public to help those who are already convicted by the facts and public opinion to be

  • untrustworthy,
  • crooked,
  • distorters of statistics,
  • in collusion with each other in fraud,
  • liable to criminal prosecution under the treaties.

Nearly all governments have shamelessly violated the treaties such as the Stability and Growth Pact to control budget overspending and inflation. (In a Community system overspending and inflation involves stealing from Member State partners as well as deceiving national citizens.)

A fiscal union without openness or proper democracy is a fraudulent fiscal compact or a cartel compact.

In the face of a European Court judgement a few years ago, they shamelessly thumbed their noses at it and said it was up to them to decide whether they — France and Germany in this case — would be punished for this violation or not.

The European Central Bank has shamelessly violated specific articles of the treaties — and done the exact OPPOSITE of what it was supposed to do, because an unelected, technocratic President of the ECB decided — without asking the public — that it was necessary to deal with the long-term fraud committed by politicians over decades.

Will a ‘normal’ FEDERAL-style fiscal union stop fraud among European politicians involved in tax and statistics scams? No. The guardians are the politicians themselves! The Commission has been shorn of all independence. It is a politicians’ club.

Will it open up the present secrets of what they discuss behind closed doors? No.

Will it stop the international cartel of political parties acting in their own interests? Hardly, it will only encourage it.


Supranational means international democracy. Robert Schuman defined supranationalism in terms of democracy and openness — which is precisely what the Council and the European Council or the EuroGroup are NOT practicing. They want more secrecy now to hide the past and present scandals and political collusion.

What is proposed has nothing of democracy or light about it. If they wanted a supranational institution, it would be dead easy. A complementary supranational institution already exists that would instill HONESTY supervised by taxpayers. But it is in cold storage — thanks to the Council.

A supranational Community system is a democracy of democracies. We have 27 member democracies at present. WHY should the governance system of European Union be typified by the hyper-secretive EuroGroup or the European Council whose main characteristic is that they do not let the public know what they are discussing, let voters listen to what is said, let companies, associations, trade unions hear what their reasonings are or how the so-called democrats propose to tax and spend the citizens’ money?

In the case of the EuroGroup it is not even an official institution of the Community or the EU and it is the EuroGroup that is now ruling the roost. Its chairman says he has to lie for Europe. So the citizens cannot trust even his information about when it will meet. It makes secret treaties, sets up a shady company in Luxembourg that employs government ministers and tries to lever money as if they were a bunch of Wall Street derivative crooks. They lack the expertise. They are already far from the 1.4 Trillion that was boasted about after they set up this ramshackle operation. (That is more than TEN times the annual budget of the EU!)

They lack open confidence of saying whom they are acting for (their parties or their nationals in Europe?) and even their identity (democrats, ministers or perhaps pseudo-bankers, or even conspirators against the too powerful markets?). The dog’s tail of the parties is wagging and shaking the nations. The Euro Zone Heads of Government now meet in an huddle or conference that is in NO WAY DEFINED OR REGULATED BY TREATIES. They are not sure whether to call themselves a European Summit, the European Council (which they are not! They exclude the ten non-Euro Member States) or a Council of Ministers (which they are NOT, even though they fraudulently use its letterhead paper to say they are all honest!)

How can Europe get honest finances again? Supranational democracy requires that the Consultative Committees — the bodies for democratic associations in Europe like the Economic and Social Committee, the Committee of Regions and the equivalent body in Euratom — be elected based on (1) a reference list of relevant European associations (2) elections within the list of those properly registered associations for a smaller number of seats in the appropriate bodies. (This was part of the Founding Fathers’ grand design for Europe and is still active in the body for NGOs in the Council of Europe but has been blocked by Council in the Communities.) The elected body would establish the rules for defining what is a democratic association and what is to be excluded as an unrepresentative lobby.

The Consultative Committee of the European Coal and Steel Community — even though not properly elected on a European basis because European associations did not yet exist — was able to control the finances and the budget of the pioneer Community and make sure that housing for miners etc paid out of the European tax did not involve corrupt practice and that the European tax of the Community was properly collected from all firms in the Community. Europe had a real European tax until 2002 — but this was stopped by the politicians when they decided not to renew the Coal and Steel Community Treaty for another fifty years.

At the start of the first Community politicians delayed the implementation of the changes to make the Consultative Committee a truly European body. They preferred to choose the members themselves which was the interim agreement. Then de Gaulle tried to move the European government system of the Communities to French control inside the Council with its closed doors. De Gaulle is long gone but his undemocratic deformations remain. Can they be reversed? Yes. They will be when we have Europeans with moral courage and honesty. The process of justice and democracy is ineluctable.

We, the citizens, are still waiting for the present Consultative Committees to produce plans for THEIR European elections. Don’t hold your breath. The European Parliament took decades to fulfill the minimum electoral requirements in the treaties and still has not once had a proper Europe-wide election under a single electoral statute as required by treaty law.

Such Consultative Committees — if active — would have prevented the decades of corrupt and fraudulent practice among Member States, the bad construction of the euro and the present mortgaging of the future planned behind the closed doors of the European Council and the EuroGroup. (See the budget series on and the commentaries at )

The Consultative Committees should have specialized subcommittees on monetary affairs, representing various types of associations of taxpayers. These would be open and would eliminate much of the comitology — which is neither open nor democratically approved.

Meanwhile both Parliament and the European Council make sure that Budget matters are dealt with the doors closed to the public.

What is to be done? I wrote to both presidents asking for justification, morally and legally, for what is clearly UNdemocratic practice. The following is the latest correspondence.

5 December 2011

Mr Herman Van Rompuy
President, European Council

Dear President van Rompuy,
A year ago I sent a letter asking for the legal and moral justification that the European Council closed the doors on meetings on the taxation of European citizens and budget expenditure matters. This is in opposition to the articles of the Lisbon Treaty. The treaty says clearly that all such matters, especially those dealing with the earliest consideration of legislation, should be dealt with openly. Morally, all Member States adhere to the principle that there can be no taxation without fair and open representation, which is then the basis for public awareness and public consultation. Consultation is impossible if the consideration of such vital financial matters is presented cut and dried by politicians, without public access to the debate so they can employ the means in the treaties to influence the decisions, to ensure control and provide adequate inspection of the results through properly elected Consultative Committees.

The public is showing increasing distrust of politicians and so are markets. This lack of open responsibility has now resulted in proposals for trillion euro operations mortgaging the future of the next generations. Even before the European Council was designated an institution in the Constitutional and Lisbon Treaties, it had the moral obligation to have open meetings. It did not. That was the reason that a decade ago the principles of openness were written into the treaties. Half a century ago Robert Schuman said that “the Councils, the Committees and the other organs {of Europe} should be placed under the control of public opinion.”

Secret political ‘deals’ of the past are now paralyzing Europe. Why is the principle of openness and democracy still not being respected? European finances are not the property of politicians.

I am therefore sending this reminder, as I believe the public has a right to know the legal and moral opinion why the European Council deems it can close the doors while attempting to extract tax money and design its plans for spending public money.

Many thanks for your help in this matter.

Yours etc

A reminder letter was sent to President Buzek of the European Parliament with this complaint introduced to the European Ombudsman for non-response.

The Parliament has not replied to my letters. They deal with my exclusion, press exclusion and exclusion of the public to matters of primary importance to all, namely, holding secret, closed door meetings on taxation of European citizens and use of the budget.

I was excluded from meetings as noted in the correspondence. President Buzek’s earlier argument made for exclusion is not logical or consistent. The Parliament excludes journalists and the public whether or not the Council is involved.

The Parliament says it upholds the principle of open meetings. As for the Council setting the rules in prima facie violation of the treaties, there is a simple way to resolve any potential ‘bullying’ of the Parliament by the Council. That is to get a ruling by the Court of Justice on such articles as Article 15 TFEU and general principles of taxation and open representation.

For decades the institutions involved which are supposed to be independent and sovereign have refused to do so, being submissive to Council. The public which is the most important partner in the taxation debate should under no circumstances be excluded from discussions among politicians who have their own agenda and interests that are not identical with their electors (the voters are a minority of the electors who increasingly refuse to vote) or the public in general. All the institutions were created for the citizens, not for the political parties who are now (often contrary to the treaties) firmly ensconced in all the institutions, save the Court.

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