Take a look what it is doing to every citizen of the eurozone and others. Full IPJ text is here. Below is Ian’s text, abridged by me:
What do you do when you get into financial trouble? What do you do when all your friends are in financial trouble as well?
Do you cut your spending? Do you borrow more? Or do you, as the European Commission has done:
Set up a company, get all those friends who are in financial trouble to buy shares in your new venture by robbing their taxpayers of huge amounts to raise the paid up capital (details at the bottom), then get all the friendly governments to give this new company legal status, privileges normally reserved for diplomats along with full immunity for all and anything they do whilst working for the company, plan to employ a whole raft of new staff, appoint a Board of Directors and a Managing Director, invoke professional secrecy rules on them all, and get governments to grant immunity to the persons and exempt them from income tax (the company will tax its employees and keep it).
On top of that, ensure that your new company is exempt from all and any kind of registration, regulation, supervision, oversight or taxation and can operate OUTSIDE of all legal structures, AND gets to audit itself whilst leaving the EU Commission as the sole negotiator on loans made by your ‘company’.
That is exactly what the EU Commission have done with their ESM Treaty (European Financial Stabilisation Mechanism). The Mafia could not have done any better.
# The first thing to note is that they changed the Lisbon Treaty, without a vote or re-ratification in National Parliaments.
# Then in true Mafia style, the Commission insists that all Euro area member states become members of the new company. No doubt an offer they couldn’t refuse, although non euro area states were told they could watch (7).
# It then goes to to arrange that Collective Action Clauses (CACs) will be included in the T&Cs of all new euro area government bonds starting in July 2013, and that these arrangements will be finalised by end 2011.
# Then it arranges for this new ‘company’ to give itself Preferred Status.
Article 3 provides the purpose. It sets out that it will operate under strict economic policy conditionality, not legal conditions.
Article 4 sets out its Structure and voting rules, and reiterates that if an ESM member doesn’t pay, it loses its voting rights.
If any ESM Member fails to pay any part of the amount due in respect of its obligations in relation to paid-in shares or calls of capital under Articles 8, 9 and 10, or in relation to the reimbursement of the financial assistance under Article 14 or 15, such ESM Member shall be unable, for so long as such failure continues, to exercise any of its voting rights. The voting thresholds shall be recalculated accordingly.
It will potentially allow at some stage in the future, Germany and/or France as the biggest shareholders to gain complete control of the board, the voting and the money, as the smaller countries fail or are unable to pay new capital calls.
Article 5 lays out the structure and rules for the Board of Governors – no mention of elected officials such as National Parliamentarians or MEPs, none, nada, zilch. They can:
6. The Board of Governors shall take the following decisions by mutual agreement:
(a) issue new shares );
(b) make the capital calls;
(c) change the authorised capital stock;
(e) establish thefinancial terms and conditions, and the choice of instruments;
(f) give a mandate to the European Commission to negotiate, in liaison with the ECB, the economic policy conditionality;
(g-i) change the pricing structure and pricing policy for financial assistance, the list of financial assistance instruments;
(j) approve the application for membership of the ESM;
(k) make adaptations to this Treaty as a direct consequence of the accession of new members, including changes to be made to the distribution of capital among ESM Members
(h) approve the annual accounts;
(i) appoint the members of the Internal Auditing Board;
(j) approve the external auditors;
(k) waive the immunity of the Chairperson etc.;
(l) determine the taxation regime
Hey, its only taxpayers that will have to cough up for all this shite…NOW we get to the interesting stuff. Its all taxpayers money remember, until it goes into the coffers of a company… and this new body is such a company.
Article 8 – Authorised capital stock.
The authorised capital stock shall be EUR 700 000 million. It shall be divided into seven
million shares, having a nominal value of EUR 100 000 each, which shall be available for
subscription according to the initial contribution key provided for in Article 11 and calculated in Annex I.
Thats 700 BILLION of Eurozone taxpayers Euros, and once its in… it stays in.
They can call for more at any time.
Article 13 Procedure for granting financial assistance
3. … the Board of Governors shall entrust the European Commission with the task of negotiating with the ESM Member concerned and The European Commission shall sign the MoU on behalf of the ESM, subject to prior compliance with the Board of Governors.
The EU Commission do the negotiations, call the shots, make the rules and sign the contracts but this new company paid for by the taxpayers is just the front man… no wonder they want immunity in this money laundering operation. And not a law enforcement or an elected official in sight.
Article 17 Borrowing operations
The ESM shall be empowered to borrow on the capital markets from banks, financial institutions or other persons or institutions for the performance of its purpose.
Article 18 Investment policy
The Managing Director shall implement a prudent investment policy for the ESM, so as to ensure its highest creditworthiness, in accordance with guidelines to be adopted and reviewed regularly by the Board of Directors.
Article 21 Coverage of losses
1. Losses arising in the ESM operations shall be charged:
(a) firstly, against the reserve fund;
(b) secondly, against the paid-in capital; and
(c) lastly, against an appropriate amount of the authorised unpaid capital, which shall be called in accordance with Article 9(3).
Item (c) is what we call Taxpayers.
Article 22 Budget
They get to make and approve their own budget.. again, no oversight.
Article 24 Internal Auditing Board
The Internal Auditing Board (the “IAB”) shall consist of three members appointed by the Board of Governors for their competence in auditing and financial matters.
Article 25 External auditing
The accounts of the ESM shall be audited by independent external auditors approved by the Board of Governors.
Article 26 Location.
With so much French involvement in this money laundering scam it is little wonder that this will be headquartered in Luxembourg.
Article 27 Legal Status, privileges and immunities
The opening clause in this Article sets the scene.
To enable the ESM to fulfil its purpose, the legal status and the privileges and immunities set
out in this Article shall be accorded to the ESM in the territory of each ESM Member. The ESM shall endeavour to obtain recognition of its legal status and of its privileges and immunities in other territories in which it performs functions or holds assets.
Now watch this:
2. The ESM shall have full legal personality; it shall have full legal capacity to:
(a) acquire and dispose of movable and immovable property;
(c) be a party to legal proceedings; and
(d) enter into a headquarter agreement and/or protocols as necessary for ensuring that its legal status and its privileges and immunities are recognised and enforced.
The ESM, its property, funding and assets, wherever located and by whomsoever held, shall enjoy immunity from every form of judicial process except to the extent that the ESM expressly waives its immunity for the purpose of any proceedings or by the terms of any contract, including the documentation of the funding instruments.
The property, funding and assets of the ESM shall, wherever located and by whomsoever held, be immune from search, requisition, confiscation, expropriation or any other form of seizure, taking or foreclosure by executive, judicial, administrative or legislative action.
The archives of the ESM and all documents belonging to the ESM or held by it, shall be inviolable.
The premises of the ESM shall be inviolable.
The official communications of the ESM shall be accorded by each ESM Member and by each state which has recognised the legal status and the privileges and immunities of the ESM, the same treatment as it accords to the official communications of an ESM Member.
To the extent necessary to carry out the activities provided for in this Treaty, all property, funding and assets of the ESM shall be free from restrictions, regulations, controls and moratoria of any nature.
The ESM shall be exempted from any requirement to be authorised or licensed as a credit institution, investment services provider or other authorised licensed or regulated entity under the laws of each ESM Member.
So lets understand this. Total Immunity except in the case of a contract. But… you can’t search buildings or assets, can’t take any legal actions and all archives and documents are inviolable, its buildings and communications are given diplomatic immunity so you can’t touch them for anything. The property and funding is outside of the reach of anyone and they don’t need to be licensed or regulated in any way. It really is a legalised Mafia.
Article 29Professional secrecyBoth during and after their duties have ceased, covered by the obligation of professional secrecy.
Article 30 Immunities of persons
In the interest of the ESM, the Chairperson of the Board of Governors, 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.
You really do have to question WHY? Normal corporate indemnification should suffice unless they are expecting to do things that are illegal Are they expecting the Board to skim off a good amount of taxpayers money or make inappropriate loans as the head of the IMF is alleged to have done, and are they really expecting that any of these clauses will hold water when the Euro collapses and the EU burns.
Article 31 Exemption from taxation
Within the scope of its official activities, the ESM, its assets, income, property and its operations and transactions authorised by this Treaty shall be exempt from all direct taxes.
Goods imported by the ESM and necessary for the exercise of its official activities shall be exempt from all import duties and taxes and from all import prohibitions and restrictions.
Staff of the ESM shall be subject to an internal tax for the benefit of the ESM on salaries and emoluments paid by the ESM, subject to rules to be adopted by the Board of Governors. From the date on which this tax is applied, such salaries and emoluments shall be exempt from national income tax.
Above all else, this one really does take the biscuit, bearing in mind that this Mafia body’s very existence will be based upon the robbing of taxpayers to make loans that taxpayers will have to repay because their respective governments have wasted their taxpayers money and overspent. In other words, money laundering.
Article 33 International cooperation
This is the clause that effectively lets this Mafia engage in a turf war and muscle in on the activities of the IMF, non euro area States, and any international organisation or entity (which will include banks but does not specifically say so). Its how the Mafia would want it.
Article 35 Transfer of EFSF supports
This is how the EU Mafia take over the existing bail-outs and repayments..
Article 36 Payment of the initial capital
The poor taxpayers in the Eurozone can expect their taxes to massively go up to cover this. They really do need to pray that the Euro and the EU collapse and burn before 2013.
Article 37 Temporary correction of the contribution key
This set of clauses allows for readjustments to be made should any other countries be stupid enough to join the Euro and be forced into this scheme.
Article 38 First appointments
My money is on a certain disgraced Frenchman, an ex-IMF man taking control of this lot.
Article 39 Accession
You guessed it, joining the Mafia Bank will become part of the Accession agreement for any new member state of the EU.
Article 43 Entry into force
This Treaty shall enter into force on the first day of the second month following the date when instruments of ratification, approval or acceptance have been deposited by signatories whose initial subscriptions represent no less than 95 % of the total subscriptions set forth in Annex II.
Done at Brussels on the eleventh day of July in the year two thousand and eleven in a single original, whose Dutch, English, Estonian, Finnish, French, German, Greek, Irish, Italian, Maltese, Portuguese, Slovak, Slovenian, Spanish and Swedish texts are equally authentic, which shall be deposited in the archives of the Depositary which shall transmit a duly certified copy to each of the Contracting Parties.
The EU has always been corrupt, but this new form of corruption will leave millions of people in poverty. It may save a few faces, it may save a few banks, but the peoples of Europe will never forgive or forget this new form of economic slavery, a heinous crime, and the levels of totally un-repayable debt that is now being thrust upon them… by the unelected mafia that is the EU Commission.Ref: ESM TREATY – ENGLISH
I have one comment – this is grand theft.