The source of the eurzone crisis and the EU super-state, with Godfrey Bloom
Welcome to Capital Account. Germany's Constitutional Court ruled that the eurozone's permanent bailout fund, known as the ESM, does not violate the country's laws. But there is reportedly some ambiguity in the ruling that could give rise to more political wrangling over the rescue package. Lauren speaks with Godfrey Bloom, Member of the European Parliament and the UK Independence Party, about what motivated the court’s decision, and the problems that lie ahead for the European Union.
Meanwhile, European Commission President Jose Manuel Barroso’s State of the Union address called for a federation of nation-states – a European super-state – and unveiled plans for ECB supervision of all eurozone banks. But was it the lack of regulation on centralized banking that caused the current debt crisis, or is this really about something else? We ask Godfrey Bloom if integration is really the solution to the EU's problems.
And despite attempts at consolidation in the EU, more signs that the union is unraveling are emerging. While Spanish leaders delayed a decision on seeking an ECB bond bailout, the debt crisis has fueled an independence movement Spain’s Catalonia region. Could this be one of the ironies of integration?
Plus, in today’s episode of ‘Loose Change,’ Lauren and Demetri discuss Apple’s latest announcement: The iPhone 5. According to Reuters, this gadget won’t just benefit the tech world – it could singlehandedly boost the US economy!