Of course, the objective is a European Federation of 27 member states with an economy (and evenrually currency) larger than the U.S. or China. Already the E.U. is a Confederation with a Parliament, a Government (Commission), a President, a Central Bank, Customs Union, common farming and fishing poliicies etc, etc. And there are several countries in the queue to join the E.U., some of them (like Turkey) already part of a F.T.A. and Customs Union with the European Union. So there is already a kind of "NAFTA" between the European Union, Turkey, Norway, Switzerland, Croatia, Iceland etc. Ukraine, Belarus, Israel and Morocco also have applied to become a E.U. member state. Next Jan. 1st. Estonia will become the 17th member state of the Eurozone. The Euro is both a political and economic tool to achieve the European Federation. Of course, as most EU member states are also NATO members, the EU is an American Protectorate under a U.S. Supreme Commander. Kissinger and Fieldstein used to say that the U.S. will never allow an autonomous Europe (from the U.S.) The will never allow an independent E.U., as they in fact demonstrated a few years ago during the Iraq War when Schroder and Chirac tried to create autonomous European Defense Headquarters and a close relationship with the Russian Federation. The American Dictator didn´t allow it.

It is quite correct that in the original rules of the Euro currency there were no bailout clauses, since the basic fundamentals were that each country would abide by the rules of borrowing. There was however, in my opinion one fundamental flaw. That there was no internal moratorium of the pricing of goods to remain equivalent to the original currency price for a period of 1 to 2 years before a natural rise in euro equivalents took place. EG. if an original price was 10 and the euro value was 2.2 original to 1 euro the price would be Euro 4.545 or 5.50. Many people placed a euro sign in front of the original price. Therefore inflation takes place and gathers momentum as each year goes by with countries having to print more euro's than the value of their original currency holdings. The reasoning of the creation of the euro was to stop the currency speculation that took place against the various currencies of the member states, when the EU was the EEC and each currency had a varying value to the dollar. This had a destabalizing effect on the combined economies of the EEC. The bailout package was done to stop the destruction of the EU, even though Greece broke the rules of its entry to the euro by creating a fake financial situation. The creation of a bailout package was done to save the economic union of the EU, even though it flew in the face of the original rules. New rules were created. Soon a new body will come into being, the EMF, and the EU will no longer contribute to the IMF. The EU is the largest contributor to the IMF. @ Enrique. A European Defense Force will come into being. Read http//:www.leap2020.eu/ Read EU defense ministers advocate military cooperation as austerity measure.

Dr. Wilhelm Hankel's assertion that the formation of the European currency union was a case of “concubinage”[i.e convenient/illicit union] is a brilliant way of capturing the whole matter.

The Euro is just one step which avoids speculative attacks against national currencies from member states of the Eurozone. The same way, a common Euro bond will avoid speculative attacks against national bonds from member states of the Eurozone. Perhaps a common European Sovereign Debt will be born during the next months.