Topic: Fiscal Integration

European Council President Herman Van Rompuy, referred to as "Haiku Herman," outlined a plan for deeper fiscal and economic integration within the Eurozone. He emphasized that the Euro is an "irreversible project" and promised a finalized framework for economic union by the end of the year. The hosts note his apparent stress and the repetitive nature of his reassurances to global markets.

The hosts discuss the "informal" meeting where a new European treaty was fast-tracked to enforce fiscal discipline. Herman Van Rompuy explains the "debt break" and "automatic correction mechanisms" that will be integrated into national constitutions to ensure irrevocable economic integration.

Italy's new unelected government, led by former Goldman Sachs advisor Mario Monti, is characterized as a "banker takeover." EU leaders, including Herman Van Rompuy, are pushing for "harmonization" of taxes and social services, which the hosts interpret as a loss of national sovereignty. There is a prediction that a formal European Constitution will be introduced to solidify fiscal integration.