Tuesday, 23 November 2010

Its A Mad, Mad EU/Coalition World

"When a self-governing people confer upon their government the power to take from some and give to others, the process will not stop until the last bone of the last taxpayer is picked bare."
Howard Kershner

One has to doubt the thought processes of politicians today when a national government commits to a rescue package for another country and promises a set sum of money without even knowing how and when it will be repayed, nor the rates of interest to be charged.

One also has to doubt a democratic process whereby a politician of a government that has been voted out of office can make a decision - during an 'interregnum' period - which commits an incoming government to a policy to which they are opposed without, especially without, that decision being debated in Parliament.

That decision by Alistair Darling means that British taxpayers may face further multi-billion-pound bills incurred through the costs of bailing out other members of the European Union, those countries being initially, it is understood, Portugal and Spain. Presently the European Financial Stability Mechanism (EFSM), whilst able to cater for Greece, Ireland and, if necessary, Portugal is not designed to cater for Spain - and would be unable so to do. It needs to be remembered that Spain's sovereign debt totals around €560billion, a figure which is approximately €30billion more than that of Greece, Ireland and Portugal combined.

Then of course let us not forget the spectacle of a government, that presents itself as "Eurosceptic" in outlook, agreeing to yet even more European integration. Whilst not a member of the eurozone, Britain is still constrained in its financial management of its own affairs by its membership of the EU. Witness the fact that Britain has just been saddled with making a payment of approximately £14billion, one that had not been budgeted for and which adds to her debt as this money has to be borrowed. The Telegraph reports that the final decision whether this loan counts towards our national debt will be made by the Office for National Statistics. For heaven's sake, if you borrow money, you incur a debt!

To compound the problem of financial management, EurActiv reports that the European Commission are to discuss a new proposal for the 2011 Budget, one that will peg the increase to the required 2.91% but which "includes a series of declarations over sensitive political matters such as new "own resources" for the EU budget" - "own resources" being Eurospeak for an EU tax.

Matters are not helped by an editorial in a national newspaper stating that: "Europe’s leaders must, therefore, focus on creating instruments that prevent the capital markets holding the whole of the EU to ransom when one of its weaker members becomes distressed, and allow instead a managed exit from the eurozone". Perhaps they have forgotten that the creation of a single currency does not allow for any members leaving - it being intended as  a permanent and irreversible creation. In any event, any member leaving would signal the death-knell of the EU and they ain't going to allow that to happen. If this is to become Coalition policy then it demonstrates further their wish to override those of their electorate.

The time has now come for the British people to be afforded the right to decide WTF actually governs this country!


Sean O'Hare said...


Last sentence 3rd Para. Think you mean Greece, Ireland and Portugal.

Witterings From Witney said...

My thanks SO'H - amended.