Free Trieste

The Banca Popolare di Vicenza’s Trieste office. This is one of many banks on the brick of default in the Free Territory of Trieste.

The European Union’s banking crisis affects the weakest EU Countries the most. They are the economic giant’s “soft underbelly” and they never had a real development chance.

The 28 EU Member States have too many economic, political, cultural, and social differences. This makes real integration and growth for all rather difficult.

The EU cannot withstand international economic crises. Such events put its weakest Member States on their knees. Indeed, the EU’s people lack cohesion. They don’t feel like they belong to the same Nation at all.

On its side, the EU is a mere economic pact. It has no ambition to become something else, a federation os States perhaps, with one and only economic policy and government. The EU Member States are, in the end, kept together only by economic policies. One big single market, the same, certain rules for all. That’s it.

Besides, even the single market is not an easy project. Indeed, it involves many different States. In the North, there are rich, developed, and highly industrial societies, while in the South and in the East there are poorer, rural, and not-so industrialized States. The EU is a fragile system, and this becomes more and more clear whenever an international economic storm hits it.

This is when this unusual complex trembles. And it trembles more as trembles each of its Member States. Indeed, the resilient, stronger economies (Germany, France, United Kingdom, Netherlands, Denmark, Sweden, Finland) are much different from that the weaker economies (Italy, Spain, Greece, Portugal). Indeed, weaker States seldom are immune from much corrupt political systems.

It is in this kind of situation that would require those forms of solidarity between Member States to grant the weakest ones with the economic support needed to get over the crisis. The richest Countries should give up part of their wealth to help the weakest. A sacrifice that would allow to raise the European Union from a virtual monument of Union of States to an actual State-like body.

But it is right on this test bench that the forced economic union of Europeans does resoundingly fail. And, on the other hand, there was no reason o expect a different outcome. How can, Countries that have been ferociously at war agains one another for centuries seriously coexist, as brothers? It is clear that the formula of welfare for all that provided the base for the very establishment of the European Economic community proved to be a failure. No State of the present-day European Union is willing to pay the debts of the other Member States.

Given that this is the case for the Member States of the E.U. just think about these that – like the Free Territory of Trieste, subject to unfair Italian taxes for being regarded to as a part of the Republic of Italy – have nothing to do with the Community.

This is the unique case of an independent State that, with its international Free Port, represents the extra E.U. Singapore of Europe. A dangerous competitor that the European Union attempted to eliminate by supporting, obviously without any act with a legal value issued by the European Parliament, the Italian policy for the progressive annihilation of the Free Territory of Trieste.

The Free Territory of Trieste has the right, among others, established by the Treaty of Peace of 1947 in force (and prevailing over the very constitution of the European Economic Community) to have its own currency and its own economic system, complete with Central Bank and Stock exchange.

But the FTT does also have the right to not pay the public debt of the State of Italy, a condition that is regulated  by article 5 of Annex X of the Treaty of Peace and of vital importance to grant the final end of Italian sovereignty over Trieste, which ended on 15 September 1947.

What is happening in Trieste, even on the level of the collapse of the banking system of Italy and Europe, can therefore be reverted. The citizens of the Free Territory of Trieste have the right to have their savings protected outside the economic system imposed by Italy illegally. Which means outside the lass of the European Union and outside the control of the European Central Bank. Rules and norms that are null and void in a sovereign State that is outside the economic pats of the European Union.

But what is happening in banking system of the rotting Republic of Italy and what could be the consequences for Trieste if it weren’t fro the protective shield of the Treaty of Peace? Not it is time for a reasoned overview, given the latest scandals that did directly involve the executive of a Government – don’t forget it – that has not even been elected by the people.

After the crack of the Monte Paschi di Siena (EUR 10 billions), one of the banks of the current ruling party (P.D.), the scandal of consumer cooperatives was sparkled, the so-called “red cooperatives”, another fortilice of the Italian left-wing parties. Thousand small depositors trusted the Cooperative Operaie but they ended up losing all of their life-time savings. The media stood in silence. Once again, of course, like for the Montepaschi case, no liable person was identified by magistracy: it is all functional to the Italian regime of corruption, of course.

The crisis of the COOP alone did put at stake investments worth EUR 15 billions of 1,300,000 savers. This was the turnover, outside of all controls, of the COOP. They would be the 25th bank in Italy, if they became one.

From one scandal to another, here comes that of the main Credit Institutions (Banca Etruria, Banca Marche, CariChieti, CariFe) “saved” with the decree of the Government before the coming int force of European law “bail in” which does expressly forbid State aid from 1 January of this year. Once again, who payed for it is the savers. Those who invested in obligations suggested by the banks has lost everything. The rescue of the Government was for baks only. What a hoax, or fraud actually. Because when it comes to banks on the edge of default, in Italy there is plenty, way too many to be saved, now that Community Law forbids it.

Between 20 November last seating before the decree «salva banche» (to save the banks) and 9 December, the 79 subordinate Italian banks treated by the EuroTlx registered an average closing price fall of 2,28%. The bonds under the most pressure are those of banks like Veneto Banca, Popolare di Vicenza (the subordinate 4,6% expiring 15 December 2017 registered the worse fall), Monte dei Paschi and Carige. Only a contamination to the «subs» of the stingiest banks.

Essentially, the Italian banking system is collapsing under the weight of national corruption and the price is paid by savers in first place. In a country at risk of default, not even postal savings are safe. The majority of the holders of an account do probably have no idea that their money is assigned to the Cassa depositi e prestiti (Deposits and Loans Fund) controlled by the Government directly. This happens because in Italy, all appointments of the heads of the banks and of the postal services are decided on the bases of political identity. And these managers respond of their actions to the parties, not to the savers.

This deviant financial system is collapsing along with the whole Country extends to Trieste as well, but, again, here the savers can defend themselves by the simple exercise of their rights of citizens of the Free Territory of Trieste. And, as for the damages, the Italian Government is liable for them and it must refund down to the last Euro the citizens who are involved, unfortunately, in the violation of the laws and of the states of the fiscal and administrative regime of the Free Territory of Trieste.

Translated from blog “Environment and Legality” by Roberto Giurastante