Slovenia, thanks to reckless lending, has been driven over the edge. As usual, taxpayers are bailing out its three big banks. But Europe is attempting to stop this from happening in the future. The EU is trying to establish a banking union to minimize the social and economic upheaval.
On December 11, an agreement was reached which is hoped will limit future bailouts. Instead of punishing taxpayers, creditors will be on the hook in a large scale. That means that creditors, banks and governments will contribute to a national-resolution fund of €70 billion which will provide the funds for bank rescues.
The new deal will relieve taxpayers from automatically safeguarding senior bonds and big deposits. Even uninsured deposits of individuals and smaller enterprises will be protected.
Part of this process of switching to a common pot of money involves the European Central Bank becoming the supervisor of euro-zone banks beginning late in 2014. The supervisors would step in should a bank be deemed to be failing. This centralization of power over the economy is seen as essential, but it actually pushes the European Union further toward its prophetic destiny.
The new process will be weighted so that countries that have a larger economic clout, like Germany, will have more say and more power to block a proposal. Over the next ten years, the process will gradually replace the current system of directly using taxpayer money to bail out banks.
The European Union is designed to centralize power to economically and politically resurrect the Holy Roman Empire. This is already well in progress. The Eurozone crisis has been the catalyst to increase the power of European Union in Brussels and European Central Bank, both of which are under the control of Germany. But Europe’s economy is also intertwined with the Vatican. The Bible tells us that the Vatican has a lot of intimate involvement in the economy of Europe as well as the rest of the world.
“For all nations have drunk of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich through the abundance of her delicacies… And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more…” Revelation 18:3, 11
Expect more centralization of the European Union and the Eurozone.