This would include a new 3 percent budget deficit rule with automatic sanctions on any violators. The European Court of Justice would be given power to decide whether or not an individual nation was complying with the 3 percent rule or not. A highly controversial new tax on all financial transactions is also being proposed, along with a number of other repressive new regulations that are designed to more tightly integrate Europe. Germany says that if all 27 EU nations are not willing to go along with a new treaty then it is prepared to strike an agreement with just the 17 nations that make up the eurozone. But not everyone is thrilled with what Germany is trying to do. Critics are saying that the German proposals (which are also being backed by the French) would mean a massive loss of sovereignty for most of the nations that make up the eurozone, and they would essentially turn the eurozone into "the United States of Germany".
The funny thing is that the German proposals to "fix" Europe involve very little sacrifice from Germany itself. Germany would not be contributing any additional money to bail out the rest of Europe and Germany continues to completely rule out the creation of "eurobonds" which would help spread the risk of default across the entire eurozone.
Sadly, even if the German plan is adopted and all the nations in the eurozone agree to it, the financial crisis in Europe will still not be fixed. Read More