People should have a voice through referendum

This is funded by the European United Left/Nordic Green Left (GUE/NGL)

THE agreement on financial discipline hammered out by EU leaders (all bar Britain’s David Cameron) fell far short of its goal of achieving a ‘breakthrough’ to solve the financial crisis.
The causes of the financial crisis are many but the lack of control or supervision of financial markets was its main driver. The coveted ‘confidence’ of markets assumes that markets are rational and ignores the greed for short-term profits as a key determinant of market activity. The policy of market appeasement over the past 15 years led us into the crisis and cannot lead to recovery. However, extreme austerity seems to be the only idea that EU leaders have come up with in their struggle to resolve a crisis that has hit small investors and families hardest.
As a first step towards progressive economic governance and financial sector regulation, a tax on international transactions must be implemented quickly. A tax on financial transactions for all financial instruments at the very low tax rate of 0.1% for stocks and bonds and 0.05% for all other transactions, including foreign exchange transactions, would curb excessive speculation, link investors to their actions in a lasting manner, and will provide resources for the development of the global south.
Ultimately, banks must be told that their work should be done under state supervision or state control. The introduction of democratic controls, public banks and a public financial sector would provide public funding to projects that create jobs, protect public services and facilitate environmentally sustainable development is at the heart of the efforts of the European United Left/Nordic Green Left in the European Parliament in its work for a social union that places needs before profit and provides comprehensive measures to ensure that taxpayers do not have to bear the costs of financial crises and speculation.
But questions arise not only in relation to the policy approach agreed at the summit last week but also on the procedure. People should have a voice through referendum on the radical changes that are being proposed. In fact, the elimination of the European Parliament from the creation of a fiscal union and the fact that the elected representatives of the people simply observed the preparation of the new rules is a disgrace.
A transparent and democratic process with the full involvement of Parliament and the people of Europe should follow or another reason for the growing frustration and disillusionment with politics will be added to the heap.