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April 27, 2015
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Current Concerns  >  2011  >  No 20, 2 October 2011  >  Austria: Objections and Reservations to ESM (European Stability Mechanism) [printversion]

Austria: Objections and Reservations to ESM (European Stability Mechanism)

Open letter of Dr iur. DI. Heinrich Wohlmeyer, Hon. Prof Gen. Dipl.-Kfm. Günther Robol Dir. i. R. Certified Public Accountant and Tax Consultant

The President of the Federal Republic of Austria, Dr Heinz Fischer, The President of the Austrian Parliament, Mag. Barbara Prammer, The Chancellor of the Austrian Republic, Werner Faymann, The Vice-Chancellor of t he Austrian Republic Dr Michael Spindelegger, The Minister of Finance, Dr Maria Fekter, The Minister of Economic Affairs, Family and Youth , Dr Reinhold Mitterlehner, The Speaker of the Green Party, Dr Eva Glawischnig, The Chairman of the Liberal Party, Heinz Christian Strache, The Chairman of the Alliance Future Austria, Josef Bucher

To the heads of the delegations of the Austrian political Parties to the European Parliament, MEP Dr Hannes Swoboda – Social Democratic Party,
MEP Mag. Othmas Karas – Peoples Party,
MEP Ulrike Lunacek Green Party,
MEP Andreas Mölzer Liberal Party

Vienna, 2011-09-15
RE: Reproach concerning the planned acceptance and ratification of the Agreement for the  European Stability Mechanism (ESM)

As responsible citizens the undersigned have read the draft oft he ESM with the necessary diligence and accuracy. We have come to the conclusion, that this draft shall not be accepted. Those who sign it, have to be judged as having acted with dolus eventualis, if the foreseeable consequences eventuate.

Not only the agreement contradicts the basic EU-conventions, which constitute the basis of entering and holding EU-membership, it also violates the Austrian Federal Constitution, since it transfers the prerogative right of all democracies – i. e. the financial sovereignty – to an institution beyond its control.

If this agreement would be signed, all EU-memberstates would be directed by an anonymous financial oligarchy without democratic legitmacy. To say it  bluntly: It is an enabling act to install anonymous financial enslavement under the pretext of ‘soldarity’.

Paricularly the committment for liabilities in favour of the finance-sector, will overtax the capability of the national economies and the cooperativeness of the citizens to undergo further financial sacrifices.

The “unconditional and irrevocable” obligations to initial and additional payments (Art. 8. and 9) give testimony of this putting in chains in favor of the big capital owners.

Through the obligation to act in agreement with the IMF the indirect influence of the USA is established; i.e. the co-determination of those, who have produced and still stage the financial crisis.

The demanded privileges and immunities would secure, that the actors, who soak the citizens of Europe with unlimited ‘solidarity-bills’, would form a super-state, which de facto cannot be legally controlled, sued or prosecuted. The  legal personality of the ESM, endowed with full judicial immunity (“immunity from every form of judicial process” etc.) according to Art.27 and the same judicial immunity of its organs according to Art 30 are a judicial carte blanche.
Art 17 regulates the borrowing operations of the ESM. Since the ESM has the right of recourse against all member-states, debt-orgies without parliamentary control are possible, and the actors on the capital markets can make high profits with credits entailing practically no risk. If, for any reasons, governments want to enlarge the volume of money, than they should at least ask for the ‘creation of money’ directly from the ECB instead of getting it through a double intermediate trading at higher costs.

The aloofness concerning the worries and problems of the citizens and the expected austerity-commands, threaten to lead to public resistance, overthrow of governments or even to civil wars. When the citizens wake up and notice, that the big financial players, who ask for rising financial sacrifices of all others, but do not make an adequate contribution to the common weal, they will revolt.
We allow ourselves to add, that we have warned all politicians in time, but were dismissed as prophets of doom.

When the euro was introduced, we called attention to the fact, that a common currency cannot enforce a common economic- and financial policy. On the contrary, a common currency should be based on a successfully harmonized common economic and financial policy.

We have informed that according to our experience and knowledge it was to be expected, that the expiration of big loans in Greece, Spain and Portugal will be taken as an opportunity to create a stampede for higher interest rates.

We have pointed out, that one can only get rid of debts by orderly adjustment (cut or bankruptcy) – and not by pinning them to somebody else. Since the big players and their vassals consciously took the risks and therefore even asked for high interest rates (which include a risk-premium), they should also carry the risk of default.

Since the European politicians were so easily intimidated and put off, the strategy of the big players and their political arm, the US-government, became even more bold and brass:

By demanding and initiating public ‘Saving-Umbrellas’ the evident risks have been and are transferred to the European States (i.e. to the innocent European citizens). In the face of the evident weakness of the US-dollar, the European states and especially the competitor currency, the strong euro, could be attacked based on this shrewdly created new situation. The TEC (Transatlantic Economic Council) has given useful flank-protection.

This concerted attack on the euro, will bring the US-dollar a respiro, but it cannot save it.

Therefore it is urgently necessary, to demand a new World Currency System and a flanking debt cut. The financial bubble, which has been blown up by fiat money (‘money from the air’ or ‘drawing rights to God’) has to be brought to a peaceful implosion, instead of risking an explosion. The debtor states and their citizens should be enabled to breathe again.

How foreseeable the development towards the present crisis has been, and how advice-resistant, not courageous, blind or cowardly politics have been so far, and how much courage is necessary to change the force of established systems, may show a citation of the Encyclica  Quadragesimo Anno of 1931, Par. 106:  

“To monstrousness grows the concentration of economic power in the hands of those, who dominate and direct the finacial capital in such a way, that they have unlimited disposition over credit and its distribution. By controlling the credit facilities they dominate the blood circulation of the whole economic system … the core-element of the economy is to such an extent under their fist, that nobody dares to breathe against their command.”

Please, be aware: Proceeding on the present path means acting with dolus eventualis. The gentle uprise in direction of a new sustainable and peaceful order is inevitable.

Dr iur. DI. Heinrich Wohlmeyer,
Hon. Prof Gen. Dipl.-Kfm. Günther Robol Dir. i. R. Certified Public Accountant