Blueprint for Monetary Union
The final steps towards the establishment of a monetary union can only be taken with the approval of participating member states (with France being compulsory due to the DEU ERM's peg to Franc). As such, approving this proposal does not bring any of these changes into immediate effect, however it will formally enshrine the blueprint into DEU law and enable future implementation without need for a vote.
I. A ban on cryptocurrency in participating countries - the recent speculative attack against Russia shows that other nations are willing to weaponize exchange rates, and the new global currency transaction tax only applies to official fiat currency - meaning that cryptocurrencies are now the last such tool available for speculation. France warned this very Assembly that a speculative attack could be inflicted against Europe, and we were proved correct. Now we must fortify our continent's new Monetary Union against them once and for all.
II. Implementation of an exchange rate mechanism which would facilitate the transition of member-state currencies into a narrower band centered around the Franc.
III. The European Standard Bank's 'Fiscal Resistance' policy will be reinforced through high value investments. It shall act as an emergency bailout source for economic crises, support for recovery, and provision of regional/cohesion funds - a form of emergency fiscal stimulus.
IV. The European Clearing Union will be maintained after the introduction of the International Bancor System, to aid the ESB in monitoring the continent's trade and wider economy. It will thus be able to monitor countries with extreme trade surpluses and trade deficits, preventing debt crises from developing. While it is maintained as a monitoring system, the new International Bancor System will effectively replace the transfer device at the European level as trade imbalances are subsequently addressed at the CSN. Remember - extreme surpluses and extreme deficits around the globe will be corrected by the Bancor, meaning no country can perpetually be stuck with a huge deficit that they are unable to manage without creating a debt crisis.
V. The European Standard Bank shall become the institution responsible for determining European monetary policy, and issuing the new common currency. Each member state would be represented equally on the board and the ESB will act impartially based upon sound economic judgement.
VI. Introduction of central bank digital currency for a 6 month period prior to physical banknotes and coins - both digital and physical banknotes and coins may feature distinct designs based upon the member-states, including iconography or informal names in reference to previous national currencies.
VII. Suspension of liquidity and ESB board membership for member-states which violate the Ideals of the Union or create an unsustainable public or private debt bubble, in excess of their national trend prior to the introduction of the Euro without Assembly approval.
VIII. An exit clause by which countries could leave the monetary union guaranteed, including a temporary parallel payments system based upon tax account transfers, central bank digital currency to immediately and automatically convert Euro into national currency and reserves of physical banknotes and coins for both Euro and national currency at premises of the former national central banks for use in crisis.
Ayes: France, Germany.
