The UK needs its sovereignty to address the financial risk pumped by the Eurozone into the UK and global financial markets.
Sovereignty is central to the Brexit negotiations.
The EU treats sovereignty as a tradable chip and is hoping the UK will do the same. For the EU plays a giant shell game in its legal system, treating both the Eurozone system and the member state fiscal arrangements as sovereign when these two propositions cannot be true at the same time – so both are false. The system’s setup leaves the Eurozone with no centralised fiscal capacity. At the same time, Eurozone members are unable to order the ECB to print more money to repay their debts, so run the constant risk of default in the way that true sovereigns do not.
This sub-sovereign Eurozone arrangement operates to the detriment of the UK. Unaffordable piles of southern member state debt pull down the value of the Euro to the benefit of the north’s exporters, allowing them to dump underpriced goods on the UK market. Technical TARGET2 mechanisms provide unlimited subsidisation for Eurozone producers, and member states never repay the debts that result.
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