Deal paves way for EU to flex its muscles

Alexandra Mayer-Hohdahl, Business Day, 28.10.2011

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The package designed by European leaders during a marathon summit on Wednesday will go down in history not simply as a last-ditch effort to quash their discomfiting debt crisis. The agreements also pave the way for Brussels to be granted an unprecedented amount of oversight power over national affairs — leading commentators in Greece, its main problem country, to warn within hours of an impeding "occupation". [...]

Others, however, warned that despite the "more Europe" movement, the financial crisis could yet fuel more nationalism. "We are already witnessing dangerous tasters: the rise of Euro-sceptic populism, parochialism and nationalism — the first messengers of a profound crisis of democracy — and growing distrust and division between national capitals," said Janis Emmanouilidis from the European Policy Centre, a Brussels-based think-tank. [...]

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